Calculating Payables Turnover Period Steps:

• Use the formula for payables turnover in days: (Trade payables at year end / Credit purchases) × 365.
• Substitute values: (14,000 / 108,000) × 365.
• Compute ratio: 14,000 ÷ 108,000 = 0.1296.
• Multiply: 0.1296 × 365 ≈ 47.3 days, rounded to 48 days. Why D is correct:
• Matches the standard formula for average payment period using closing payables as proxy for average. Why the others are wrong:
• A: Underestimates by ignoring full credit purchases or using monthly approximation.
• B: Likely from dividing by larger assumed total purchases including cash.
• C: Results from rough estimate like (14,000 / 108,000) × 180, halving the annual period.

Final answer: D