From the following paritcualrs taken from the books of tata press ltd, calculate trade payables tunover ratio and average payable periosd(in days):

Explanation

Trade payables trunover ratio `-("net credit purchases")/("average trade payables")=(Rs 700000)/(Rs 140000)=-5 Times`
Aveage payable period =`("Average trade payables")/("Net credit purchases" xx365= (Rs 140000)/(Rs 700000)xx365 =73 days`
Alternatively, average payable period =`(365)/("Trade payables trunover ratio")=(365)/(5)=73 days`