How long on average does take the company to pay off

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Question 1: 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?

Option 1: 15 days
Option 2: 15.5 days
Option 3: 18.5 days
Option 4: 21.5 days

Reference no: EM132931107

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