Here is the formula: AP Turnover Ratio = Net Credit Purchases ÷ Average Accounts Payable Example: Suppose a company’s net credit purchases for the year total $130 million.

Assume your small business had $80,000 in cost of goods sold during the year, $9,000 in accounts payable at the beginning of the year and $11,000 in accounts payable at the end of the year. Add ...

Dealing with mortgage company’s calls during payment grace period By Liz Weston Feb. 13, 2011 12 AM PT Money Talk ...

Finally, to get A/P days, figure your average accounts payable balance in the same manner as you figured average inventory and average accounts receivable. Divide the average by your total cost of ...