The XYZ Company has annual average purchases of $200,000 and an ending accounts payable balance of $36,000.How long,on average,does XYZ take to pay for its purchases?

Name: The XYZ Company has annual average purchases of $200,000 and an ending accounts payable balance of $36,000.How long,on average,does XYZ take to pay for its purchases?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The average payment period is calculated as (Ending Accounts Payable / Annual Purchases) * 365. So, ($36,000 / $200,000) * 365 = 65.70 days.

The XYZ Company Has Annual Average Purchases of $200,000 and an Ending