Homework Answers
Days payable ratio measures average number of days a company takes to pay its suppliers. Day's payable is shortest in GROCERY STORES.
Reason - Since the amount involved in payment of grocery is small, as grocery items are FMCG, grocery stores industry pays to its suppliers in very short time.
Computers, machinery and auto and home supply are generally capital goods and involves big amounts, payment for these is made in instalments, so they pay their suppliers over a long period of time.
Therefore, the correct answer is option (a) - Grocery stores.
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