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For the past year, Hawkeye, Inc., had a cost of goods sold of $60,382. At the end of the year, the accounts payable balance was $13,489. How long on average did it take the company to pay off its suppliers during the year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Sagot :

ayokenny2001

It will take the company (Hawkeye, Inc.) to pay off its suppliers during the year 81.47 days

What is payable turnover?

The accounts payable turnover is what measure how fast a business makes payments to creditors and suppliers in which it grant credit.

Payables turnover

= Cost of goods sold / Accounts payable

= $60,382 / $13,489

= 4.48 times

Now we can use the payables turnover to find the days' sales in payables as:

Days' sales in payables

= 365 days / Payables turnover

= 365 days / 4.48

= 81.47 days

Hence, it will take the company to pay off its suppliers during the year  81.47 days

Learn more about payable turnover here : https://brainly.com/question/4661989

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