PROBLEM $1(25$ MARKS$)$

Halwa$-$Kahwa Inc., shows a cost of goods sold of AED $52,000.$ The end of the year accounts payable balance was AED $9,500.$

a$)$ Calculate the Payables Turnover $(10$ marks$)$

b$)$ How long on average did it take the company to pay off its suppliers during the year? $(10$ marks$)$

c$)$ Interpret the ration and explain what might a large value for this ratio imply? $(5$ marks$)$