Holiday Corporation provided these figures for the year ended December 31, 2009: Cost of goods sold, $516,117; change in inventory, $67,483 decrease; average accounts payable, $58,209.
What is the company's payables turnover? Round your answer to one decimal place.

Question

Quizplus · Accepted Answer

Payables turnover = Cost of goods sold / Average accounts payable
= 516,117 / 58,209
= 8.868
Rounding to one decimal place, the payables turnover is 7.7 times.

Holiday Corporation Provided These Figures for the Year Ended December