Heritage, Inc., had a cost of goods sold of $68,314. At the end of the year, the accounts payable balance was $15,486. How long on average did it take the company to pay off its suppliers during the year

Heritage Inc. takes on average 83 days to pay off its suppliers during the years.

Explanation:

Trade payable days are the number of days in which company pays to its suppliers.

Use following formula to calculate number of days:

Trade Payable Days = (Trade Payable / Cost of goods sold) x 365

Trade Payable Days = ($15,486 / $68,314) x 365

Trade payable days = 82.74 days = 83 days (Rounded off to whole number)

Heritage Inc. takes on average 83 days to pay off its suppliers during the years.