Solution-What is the companys accounts payable turnover

What is the companys accounts payable turnover ratio

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Reference no: EM132493314

Question 1 - The following company information is available:

Average accounts receivable $100,000

Average inventories 150,000

Average accounts payable 140,000

Net sales 2,000,000

Cost of goods sold 1,400,000

Purchases 1,160,000

What is the company's accounts payable turnover ratio?

A. 20.0

B. 8.3

C. 10.0

D. 14.3

Question 2 - Which of the following is true when accounts receivable are factored without recourse?

A. The transaction may be accounted for either as a secured borrowing or as a sale, depending upon the substance of the transaction.

B. The factor assumes the risk of collectibility and absorbs any credit losses in collecting the receivables.

C. The financing cost (interest expense) should be recognized ratably over the collection period of the receivables.

D. The receivables are used as collateral for a promissory note issued to the factor by the owner of the receivables.

Reference no: EM132493314

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What is the companys accounts payable turnover ratio

Reference no: EM132493314

Reference no: EM132493314

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