Wecker Sales, Inc's comparative income statements and balance sheets show the following selected information for 2019 and 2020: E (Click the icon to view the data.) Requirements 1. Calculate the company's accounts payable turnover and days payable outstanding (DPO) for 2019 and 2020. 2. On the basis of this computation alone, has the company's liquidity position improved or deteriorated during 2020? Requirement 1. Calculate the company's accounts payable turnover and days payable outstanding (DPO) for 2019 and 2020. Begin by calculating the company's accounts payable turnover. First, select the formula to calculate the company's accounts payable turnover, and then use it to calculate t turnover for the two years. = Accounts payable turnover Accounts payable turnover for 2020 is Financial information Accounts payable turnover for 2019 isN Now, calculate the days payable outstanding (DPO). Select the formula to calculate the company's DPO, and use it to calculate the DPO for the two years. 2020 2019 = Days payable outstanding Cost of goods sold. $ 1,360,000 $ 1,450,000 Days payable outstanding for 2020 is days. (Round your answer to the nearest whole day.) Average accounts payable 340,000 $ 290,000 Days payable outstanding for 2019 is days. (Round your answer to the nearest whole day.) Requirement 2. On the basis of this computation alone, has the company's liquidity position improved or deteriorated during 2020? Print Done The company's liquidity position has V during 2020.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 8EA: Using the following select financial statement information from Black Water Industries, compute the...

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Struggling with accounting homework.

For the first four blank boxes, the possible options are: 365, Average Accounts Payable, Cost of Goods Sold, Current Liabilities, Days payable outstanding, Long-term liabilities, Sales

The last blank box: deteriorated, improved, not changed

Wecker Sales, Inc.'s comparative income statements and balance sheets show the following selected information for 2019 and 2020:
E (Click the icon to view the data.)
Requirements
1. Calculate the company's accounts payable turnover and days payable outstanding (DPO) for 2019 and 2020.
2. On the basis of this computation alone, has the company's liquidity position improved or deteriorated during 2020?
Requirement 1. Calculate the company's accounts payable turnover and days payable outstanding (DPO) for 2019 and 2020.
Begin by calculating the company's accounts payable turnover. First, select the formula to calculate the company's accounts payable turnover, and then use it to calculate the turnover for the two years.
= Accounts payable turnover
Accounts payable turnover for 2020 is
Financial information
Accounts payable turnover for 2019 is
Now, calculate the days payable outstanding (DPO). Select the formula to calculate the company's DPO, and use it to calculate the DPO for the two years.
2020
2019
V = Days payable outstanding
Cost of goods sold.
$ 1,360,000
$ 1,450,000
Days payable outstanding for 2020 is days. (Round your answer to the nearest whole day.)
Average accounts payable
340,000
290.000
Days payable outstanding for 2019 is days. (Round your answer to the nearest whole day.)
Requirement 2. On the basis of this computation alone, has the company's liquidity position improved or deteriorated during 2020?
Print
Done
The company's liquidity position has
V during 2020.

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