Practicing Success
Calculate the Trade Payables Turnover Ratio from the following information- Total Purchases Rs 4,50,000 |
7.5 times 10 times 9 times 5 times |
5 times |
The correct answer is option 4- 5 times. Credit Purchases = Total Purchases-Cash Purchases In order to calculate average Trade Payables as the figures of creditors and bills payables in the beginning of the year are not available. So when one figure is available, use the same as it is. Average Trade Payable = Creditors + Bills Payable |