Question: how to calculate days of payables?
Answer: Formula A:
(Average Accounts Payable ÷ Cost of Goods Sold (COGS)) x Number of Days in Accounting Period = Days Payable Outstanding.
Formula B:
Average Accounts Payable ÷ (Cost of Sales ÷ Number of Days in Accounting Period) = Days Payable Outstanding.
Note: For Formula B,