Trade Payables Turnover Days Formula Steps:

• Credit purchases = total purchases - cash purchases = $700,000 -$200,000 = $500,000.
• Average trade payables = (opening + closing trade payables) / 2 = ($60,000 +$80,000) / 2 = $70,000.
• Payables turnover ratio = credit purchases / average trade payables = $500,000 /$70,000 ≈ 7.14.
• Turnover in days = 365 / 7.14 ≈ 51 days (rounded to 52 in options).

Why D is correct:

• Standard accounting formula: days = 365 ÷ (credit purchases ÷ average payables), giving ≈52 days per IFRS/GAAP conventions.

Why the others are wrong:

• A. Uses opening payables with total purchases: 365 × $60,000 /$700,000 ≈ 31 days.
• B. Uses total purchases instead of credit purchases: 365 ÷ ($700,000 /$70,000) ≈ 37 days.
• C. Possible error mixing opening payables and 360-day year with total purchases, yielding ≈31 days, not standard.

Final answer: D