Selected recent balance sheet and income statement information for The Gap, Inc. follows: (in millions) 2014 Year-end accounts payable $ 1,242 Average accounts payable 1,193 Sales 16,148 Cost of goods sold 9,855 Accounts payable days outstanding for 2014 is:

Question

Business

Hanna Key

20 December, 13:59

Selected recent balance sheet and income statement information for The Gap, Inc. follows: (in millions) 2014 Year-end accounts payable $ 1,242 Average accounts payable 1,193 Sales 16,148 Cost of goods sold 9,855 Accounts payable days outstanding for 2014 is:

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Answers (1)

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Adriana Clay · Answer 1

46 days

Explanation:

Given that,

Ending Accounts Payable = $1,242

Cost of goods sold = 9,855

Average accounts payable = 1,193

Payable turnover ratio = Cost of goods sold : number of days

= 9,855 : 365

= 27

Days Payable Outstanding:

= Ending Accounts Payable : Payable turnover ratio

= $1,242 : 27

= 46

Therefore, the payable days outstanding for 2014 is 46.