On December 31st, Datton, Inc. has cost of goods sold of $ 550000 , ending inventory is $ 101000 , beginning inventory is $ 120000 ; and average accounts payable is $ 105000. What is the accounts payable turnover expressed as days? (Round any intermediary calculations to two decimal places, and round your final answer to the nearest day.) A. 72 B. 44 C. 117 D. 67

72 days

Explanation:

The computation of the accounts payable turnover ratio is shown below:

Accounts payable turnover ratio = Total Purchases : Average Accounts payable

As we know that

Cost of goods sold = Beginning inventory + total purchases - Ending inventory

i. e

Total Purchases = Cost of goods sold + Ending Inventory - Beginning Inventory

= $550,000 + $101,000 - $120,000

= $531,000

So, the account payable turnover ratio is

= $531,000 : $105,000

= 5.06 times

Now in days it is

= 365 days : 5.06 times

= 72 days