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Question - Please calculate and interpret the accounts payable days for this firm. Assume 365 days in your calculations.
Accounts Payable Days = 49.1; it takes an average of 49.1 days for the firm to pay off its purchases made on credit.
Accounts Payable Days = 35.1; it takes an average of 35.1 days for accounts payable to be paid in full.
Accounts Payable Days = 40.9; it takes an average of 40.9 days for the firm to pay off its purchases made on credit.
Accounts Payable Days = 49.1; it takes an average of 49.1 days for accounts payable to increase in value.
Accounts Payable Days = 40.9; it takes an average of 40.9 days for accountants to update accounts payable.
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Reduction of cost of goods sold for the period when payments are made.
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