Determine the average age of accounts payable and payable turns for the construction company in Figures 6-3

Question:

Determine the average age of and payable turns for the construction company in Figures 6-3 and 6-4. Use only the material and subcontract construction costs to calculate the average of What insight does this give you into the company€™s financial operations?
FIGURE 6-3 for Eastside Contractors
EASTSIDE CONTRACTORS
BALANCE SHEET

Determine the average age of accounts payable and payable turns for

FIGURE 6-4 Income
Statement for Eastside Contractors
EASTSIDE CONTRACTORS
INCOME STATEMENT
REVENUES .............. 2,225,379
CONSTRUCTION COSTS
Materials ................. 414,840
Labor ................. 564,783
Subcontract ................ 932,250
Equipment ............... 68,506
Other ................. 2,761
Total Construction Costs .......... 1,983,140
EQUIPMENT COSTS
Rent and Lease Payments ......... 21,654
Depreciation ............... 18,203
Repairs and Maintenance .......... 10,805
Fuel and Lubrication ........... 16,982
Taxes, Licenses, and Insurance ....... 862
Equipment Costs Charged to Jobs ...... 68,506
Total Equipment Costs ........... 0
GROSS PROFIT ............. 242,239
OVERHEAD ................ 207,805
NET PROFIT FROM OPERATIONS .... 34,434
OTHER INCOME AND EXPENSE ...... 7,813
PROFIT BEFORE TAXES ......... 42,247
INCOME TAX ............. 7,774
PROFIT AFTER TAXES ......... 34,473

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...