Luster Company has current assets of $130,000 and current liabilities of $80,000, of which accounts payable are

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Luster Company has current assets of $130,000 and current liabilities of $80,000, of which accounts payable are $70,000. Luster’s cost of goods sold is $460,000, its merchandise inventory increased by $20,000, and accounts payable were $50,000 the prior year. Calculate Luster’s working capital, payables turnover, and days’ payable. (Round to one decimal place.)

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...
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Principles of Accounting

ISBN: 978-1133626985

12th edition

Authors: Belverd E. Needles, Marian Powers and Susan V. Crosson

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