Oceanic Transport, Inc., has a cash cycle of 38 days, an operating cycle of 53 days, and

Question:

Oceanic Transport, Inc., has a cash cycle of 38 days, an operating cycle of 53 days, and an inventory period of 29 days. The company reported cost of goods sold in the amount of $325,000 and credit sales were $508,000. What is the company’s average balance in accounts payable and accounts receivable?

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...