Question

if creditors turnover ratio is 8, what will be the average payment period? ​

Answer 1

Answer:

45.625 days

Explanation: Average payment period=

number of days in a year /creditor turnover ratio

=365/8

Answer 2

Average payment period = 45.62 days

Explanation:

Given:

Creditors turnover ratio = 8

Find:

Average payment period

Computation:

Total number of days in a year = 365

Average payment period = Total number of days in a year / Creditors turnover ratio

Average payment period = 365 / 8

Average payment period = 45.62 days

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