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Question - The Carpentry Shop (CP) has sales of $398,600, costs of $254,800, depreciation expense of $26,400, account receivable balance of $25,000, account payable balance of $15,000, interest expense of $1,600, and a tax rate of 34 percent. If CP has net Income of $76,428, and incurs no additional cost other than pure production cost, how long on average does it take the company to pay off its trade credits during the year?
a. 15 days
b. 15.5 days
c. 18.5 days
d. 21.5 days
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