If accounts payable is $1,116 and cost of goods sold is $11,315,what is days' payable outstanding?
A)30 days
B)45 days
C)36 days
D)33 days
E)40 days

Question

Quizplus · Accepted Answer

Days' Payable Outstanding (DPO) = (Accounts Payable / Cost of Goods Sold) * 365
DPO = (1,116 / 11,315) * 365 = 36.02 days
Rounded to the nearest integer, the answer is 36 days. Therefore, the best choice is (C).

If Accounts Payable Is $1,116 and Cost of Goods Sold