Average accounts payable cycle. Use the following account information for Rian C

Question

Average accounts payable cycle. Use the following account information for Rian Company 2013 and 2014 Selected Balance Sheet Accounts of Rian Company Accounts receivable Inventory Accounts payable 12/31/14 $37,025 $53,150 $26,778 12/31/13 $44,439 $56,429 $24,977 Change $7,414 $3,279 $1,801 2014 Selected Income Statement Items for Rian Company Cash sales Credit sales Total sales Cost of goods sold $357,000 $576,000 $933,000 $488,017 What would the ending balance in the accounts payable account for 2014 have needed to be to reach this target (holding all other accounts the same)? s(Round to the nearest dollar.) Fi Enter your answer in the answer box. 10 2 MacBook Pro

Explanation / Answer

Credit purchases= Inventories at the end + COGS- Inventories at the begining= 53150+488017-56429= $ 484738

Total payment made to creditors= Opening Creditors+Credit Purchases- Closing balance= 24977+484738-26778= $482937 , This amount need to be paid to creditors to acheive the target balance in 2014

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.