Trade Payables Days Formula Steps:

• Identify credit purchases: 80% of total purchases = 0.8 × 800 = 640.
• Note trade payables (owing to suppliers) = 48.
• Apply formula: (trade payables ÷ credit purchases) × 365 = (48 ÷ 640) × 365 ≈ 27.4 days.
• Select closest option: 28 days.

Why B is correct:

• Trade payables days measures payment period to suppliers using (payables ÷ credit purchases) × 365, equaling ~28 days here.

Why the others are wrong:

• A: Incorrectly uses total purchases (48 ÷ 800 × 365 ≈ 22 days), ignoring credit terms.
• C: Overstates by ~7 days, possibly misapplying receivables data or percentage.
• D: Grossly overstates, likely from inverting formula or using unrelated figure like revenue.

Final answer: B