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3M has the sales of $32,765 million, costs of $16,682 million, inventory of $4,366 million, receivables...

3M has the sales of $32,765 million, costs of $16,682 million, inventory of $4,366 million, receivables of $5,020 million, payables of $2,266 million, and total assets of $36,500 million in its latest financial statements. How many days does it take the company to pay its suppliers?

A. 405.56

B. 55.92

C. 49.58

D. 95.53

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Answer #1
Account payable turnover ratio = Total purchases /average account payable
=$16682/2266
=7.36187 times
days does it take the company to pay its suppliers
= 365/ account payable turnover
=365/3.36187
=49.58 days
Correct Option :C
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