Tippler, Inc. has sales of $468,000, average accounts receivable of $27,500, and average accounts payable of $22,300. The cost of goods sold is equivalent to 75% of sales. How long does it take Tippler to pay their suppliers?

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To calculate the days it takes for Tippler to pay their suppliers, we first determine the payables turnover ratio, which is the cost of goods sold divided by average accounts payable. The cost of goods sold (COGS) is 75% of sales, so COGS = 0.75 * $468,000 = $351,000. The average accounts payable is $22,300. Thus, the payables turnover ratio = $351,000 / $22,300 ≈ 15.74. To find the days it takes to pay suppliers, we divide the number of days in a year by the payables turnover ratio: 365 / 15.74 ≈ 23.19 days.