Decrease in inventory $375 Decrease in accounts payable 190 Increase in notes payable 210 Increase in accounts receivable 105 10. Calculating Average Payables Period [LO2] Tortoise, Inc., had a cost of goods sold of $28,834. At the end of the year, the accounts payable balance was $6,105. How long on average did it take the company to pay off its suppliers during the year? What might a large value for this ratio imply

|| Cash Accounts receivable Allowance for doubtful accounts Merchandise inventory Aa $ 37,500 (dr) 126,000 (dr) 2,800 (cr) 26,250 (dr) Management has designated $37,500 as the firm's minimum monthly cash balance. Other information about the firm and its operations is as follows: a. Sales revenues of $350,000, $420,000, and $312,500 are expected for October, November, and December, respectively. All goods are sold on account. b. The collection pattern for accounts receivable is 60% in the month of sale, 39% in the month following the month of sale, and 1% uncollectible, which is set up as an allowance. c. Cost of goods sold is 60% of sales revenues. d. Management's target ending balance of merchandise inventory is 10% of the current month's budgeted cost of goods sold. e. All accounts payable for inventory are paid in the month of purchase. f. Other monthly expenses are $49,250, which includes $3,500 of depreciation and $2,000 of bad debt expense. g. In the event of a shortfall, the…

Given the following information, how many times does the firm turnover its inventory during the year? Beginning inventory = $50,000 Ending inventory = $45,000 Beginning Accounts Receivable = $60,000 Ending Accounts Receivable = $66,000 Beginning Accounts Payable = $70,000 Ending Accounts Payable = $84,000 Sales = $1,000,000 % credit sales = 60% Cost of goods sold = $450,000 Multiple Choice 5.8 times 38.3 days 9.5 times

JC Penney has sales of $897,400, costs of goods sold of $628,300, inventory of $208,400, and accounts receivable of $74,100. How many days, on average, does it take the firm to sell its inventory assuming that all sales are on credit? 84.76 days 121.07 days 74.19 days 151.21 days 138.46 days