Question

calculate the payable ratio from the following: accounts payable $152580, purchases $939827.
6.16 times
0.16 times
2 times
question 17 (1 point)
tells the average number of days required to pay accounts payable.
average collection ratio
payable turnover ratio
receivables turnover ratio
question 18 (1 point)
calculate the receivables turnover times ratio from the following: credit sales $1309589, accounts receivable $179225.
7.31 times
0.14 times
2 times

Explanation:

Step1: Define payable turnover formula

Payable Turnover Ratio = $\frac{\text{Purchases}}{\text{Accounts Payable}}$

Step2: Substitute given values

$\text{Payable Turnover Ratio} = \frac{939827}{152580} \approx 6.16$
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Step1: Match ratio to definition

Identify ratio for payable payment days

Step2: Select correct ratio

Payable turnover ratio links to payment days
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Step1: Define receivables turnover formula

Receivables Turnover Ratio = $\frac{\text{Credit Sales}}{\text{Accounts Receivable}}$

Step2: Substitute given values

$\text{Receivables Turnover Ratio} = \frac{1309589}{179225} \approx 7.31$

Answer:

1. 6.16 times
2. Payable turnover ratio
3. 7.31 times