Problem:
Suppose you are told that the cash conversion period (CCP) is 12.4 days for a company. Based on a 365-day year, if this company has a receivables turnover of 12x and an inventory turnover of 16.2x, determine the following:
Required:
Question 1: What is the payables turnover ratio for the company?
Question 2: If the company's average annual accounts payable?
Note: Provide support for your underlying principle.