Clay's Forging at Canal Fulton Wants to Determine Its Inventory

Multiple Choice

Clay's Forging at Canal Fulton wants to determine its inventory management performance during its past year of operations. Refer to the following information provided by the company:
Inventory on hand at beginning of the year = $273,000
Inventory on hand at end of the year = $290,000
Annual cost of goods sold = $1,790,000
Average annual accounts receivable = $45,500
Annual credit sales = $102,000
Beginning-of-year accounts payable = $227,500
End-of-year accounts payable = $316,200
Total annual purchases = $1,575,000
-Based on the above information, calculate the days of payables outstanding (DPO) .

A) 57.40
B) 63.00
C) 157.22
D) 162.82
E) Do not have enough information to answer the question