Respuesta :
The average accounts payable balance is $39,062.
Given,
Annual sales = $662,070
Cost of goods sold = $494,160
Profit margin = 4.4 percent
The accounts payable period = 29 days
The formula for account payable days is:
Accounts payable days = (Average accounts payable/Cost of goods sold) × 365 days
Now substituting the given values in the formula of account payable days we get,
29 = (Average accounts payable/494160) × 365
Average accounts payable = (29 × 494160)/365
= 1,43,30,640/365
= $39,262.027
= $39,062 (approximately)
Hence, the average accounts payable balance is $39,062.
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