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Henry-José Mitchell
on Dec 09, 2024

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Buck or Less Stores had a beginning accounts payable balance of $269,000 and an ending accounts payable balance of $327,000. Sales for the period were $3.4 million and costs of goods sold were $2.5 million. What is the payables turnover rate?

A) 7.66 times
B) 8.39 times
C) 9.30 times
D) 10.87 times
E) 11.41 times

Payables Turnover Rate

A financial ratio indicating how efficiently a company pays its suppliers, calculated by dividing total purchases by average accounts payable.

Accounts Payable Balance

The total amount of money that a company owes to its suppliers or creditors for items or services purchased on credit.

Sales

Revenue generated from goods or services sold by a company in a specific period.

  • Absorb the ideas surrounding inventory turnover and the calculation techniques.
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KY
Khash YousefiDec 09, 2024
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