Question

the number of days of payable is 90 days and the average accounts payable is OMR 10000.calculate the net purchase......​

Answer 1

Answer:

average payment period = 365days/ trade payable ratio

90 = 365/ ratio

ratio = 365/90

= 4.05

trade payable turnover ratio =

Net credit purchases/average trade payable

4.05 = net credit purchase / 10000

net credit purchase = 4.05×10000

= 40500