Requirement

$3$

$.$

$$Evaluate whether the

$$

$$company$\text{'}$s ability to pay its

$$

$$short

$-$

term debts

$$

$$improved$,$ deteriorated, or remained about the same over the year.

Determine the formula for the accounts payable turnover.

$$

$$Then$,$ complete the formula and calculate the accounts payable turnover ratios at the end of and

$.$

$$

$($

Enter amounts in millions as provided in the problem statement. Round your answers to two decimal

$$

$$places$.$

$)$

$$Cost of goods sold

$-$

:Average accounts payable

$=$

Accounts payable turnover At Year$-$End $($in millions$)$

$20$X$3$

$20$X$2$

Liabilities and shareholders' equity

Current liabilities. $......................$

Accounts payable. $..................$

$$117$

$$183$

Accrued expenses. $.................$

$94$

$172$

Employee compensation and benefits. $.$

$41$

$20$

Current portion of long$-$term debt. $.....$

$9$

$22$

Total current liabilities. $............$

$261$

$397$

Long$-$term debt. $.......................$

$1,396$

$1,314$

Post$-$retirement benefits payable. $.........$

$110$

$152$

Other liabilities. $.......................$

$7$

$27$

Shareholders' equity. $..................$

$1,955$

$1,490$

Total liabilities and shareholders' equity

$$3,729$

$$3,380$

Year$-$end $($in millions$)$

Cost of goods sold. $....................$

$$1,655$

$$1,792$