Selected financial information for Hewlett-Packard Corporation follows (in milli
ID: 2417447 • Letter: S
Question
Selected financial information for Hewlett-Packard Corporation follows
(in millions)
2013
2012
Average accounts payable
$ 13,685
$ 14,050
Year-end accounts payable
14,019
13,350
Sales (products)
72,398
77,887
Cost of goods sold (products)
55,632
59,468
A. Calculate accounts payable turnover (APT) for 2013 and 2012.
b. Calculate accounts payable days outstanding for both years.
(in millions)
2013
2012
Average accounts payable
$ 13,685
$ 14,050
Year-end accounts payable
14,019
13,350
Sales (products)
72,398
77,887
Cost of goods sold (products)
55,632
59,468
Explanation / Answer
Accounts payable turnover = 55,632/13,685 = 4.065
In days for 2013 = 365/4.065 = 89.79 o r90 days
for 2012 = 59,468 /14,050 = 4.235
Days = 365/4.235 = 86 days
Accounts payable turnover = 55,632/13,685 = 4.065
In days for 2013 = 365/4.065 = 89.79 o r90 days
for 2012 = 59,468 /14,050 = 4.235
Days = 365/4.235 = 86 days
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