Fundamental Accounting Principles
Fundamental Accounting Principles
24th Edition
ISBN: 9781260158595
Author: Wild
Publisher: MCG
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Chapter 7, Problem 13E
To determine

Concept Introduction:

Days Payable outstanding (DPO):

Days payable outstanding is the time in days which the company takes to pay off its accounts payable. Day's payable outstanding is calculated using the following follows:

  Days payable outstanding = (Accounts Payable * 365)Cost of Sales 

Requirement-1:

The days payables outstanding for each company

To determine

Concept Introduction:

Days Payable outstanding (DPO):

Days payable outstanding is the time in days which the company takes to pay off its accounts payable. Day's payable outstanding is calculated using the following follows:

  Days payable outstanding = (Accounts Payable * 365)Cost of Sales 

Requirement-2:

Which company has negotiated best credit terms with its suppliers

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Fundamental Accounting Principles

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