Heritage, inc., had a cost of goods sold of $45,821. at the end of the year, the accounts payable balance was $8,773. how long on average did it take the company to pay off its suppliers during the year? (use 365 days a year. do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.)

Calculation of Days Payable Outstanding:

Days Payable Outstanding can be calculated using the following formula:

Days Payable Outstanding = (Accounts

Payable *365) / Cost of Goods Sold

= (8,773*365)/45,821

= 69.88

Hence, Days Payable Outstanding is 69.88 days. We can say that it takes on average 69.88 days to the company to pay off its suppliers during the year.

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