Showing posts with label account payable. Show all posts
Showing posts with label account payable. Show all posts

Tuesday 11 April 2017

Number of days' credit taken

In this case the figure for closing trade creditors is compared with that for the annual purchases.  

Annual costs of sales  $6 million
Trade creditors  $1.0 million
Number of days' credit taken

The calculation is (1.0 / 6.0) x 365 = 61 days