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 formula: D a y ’ s p a y a b l e o u t s t a n d i n g = A c c o u n t s P a y a b l e * 365 C o s t o f S a l e s Requirement-1: To Calculate: Days Payable outstanding for Current Year

Question

Want to see the full answer?

Answer 1

Question

Chapter D, 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 formula:

Day’s payable outstanding = Accounts Payable * 365Cost of Sales

Requirement-1:

To Calculate:

Days Payable outstanding for Current Year

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 formula:

Day’s payable outstanding = Accounts Payable * 365Cost of Sales

Requirement-2:

To Calculate:

Reduction in Days Payable outstanding if accounts payables are reduced by 8%

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 formula:

Day’s payable outstanding = Accounts Payable * 365Cost of Sales

Requirement-3:

To Calculate:

Increase in Days Payable outstanding if accounts payables are increased by 8%

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

What is the company's net sales for this period?

What is the primary purpose of preparing a trial balance? a) To calculate net profit or lossb) To check the mathematical accuracy of the ledger accountsc) To prepare the income statementd) To report cash flows

Machinery was purchased for $78,500 on January 1, 2018. Shipping costs were $2,200 and installation expenses totaled $4,300. It is estimated that the machinery will have a $15,000 salvage value at the end of its 8-year useful life. What is the amount of accumulated depreciation on December 31, 2020, if the straight-line method of depreciation is used?

Answer 2

Question

Chapter D, 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 formula:

Day’s payable outstanding = Accounts Payable * 365Cost of Sales

Requirement-1:

To Calculate:

Days Payable outstanding for Current Year

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 formula:

Day’s payable outstanding = Accounts Payable * 365Cost of Sales

Requirement-2:

To Calculate:

Reduction in Days Payable outstanding if accounts payables are reduced by 8%

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 formula:

Day’s payable outstanding = Accounts Payable * 365Cost of Sales

Requirement-3:

To Calculate:

Increase in Days Payable outstanding if accounts payables are increased by 8%

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter D, 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 formula:

Day’s payable outstanding = Accounts Payable * 365Cost of Sales

Requirement-1:

To Calculate:

Days Payable outstanding for Current Year

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 formula:

Day’s payable outstanding = Accounts Payable * 365Cost of Sales

Requirement-2:

To Calculate:

Reduction in Days Payable outstanding if accounts payables are reduced by 8%

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 formula:

Day’s payable outstanding = Accounts Payable * 365Cost of Sales

Requirement-3:

To Calculate:

Increase in Days Payable outstanding if accounts payables are increased by 8%

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter D, 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 formula:

Day’s payable outstanding = Accounts Payable * 365Cost of Sales

Requirement-1:

To Calculate:

Days Payable outstanding for Current Year

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 formula:

Day’s payable outstanding = Accounts Payable * 365Cost of Sales

Requirement-2:

To Calculate:

Reduction in Days Payable outstanding if accounts payables are reduced by 8%

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 formula:

Day’s payable outstanding = Accounts Payable * 365Cost of Sales

Requirement-3:

To Calculate:

Increase in Days Payable outstanding if accounts payables are increased by 8%

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter D, 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 formula:

Day’s payable outstanding = Accounts Payable * 365Cost of Sales

Requirement-1:

To Calculate:

Days Payable outstanding for Current Year

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 formula:

Day’s payable outstanding = Accounts Payable * 365Cost of Sales

Requirement-2:

To Calculate:

Reduction in Days Payable outstanding if accounts payables are reduced by 8%

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 formula:

Day’s payable outstanding = Accounts Payable * 365Cost of Sales

Requirement-3:

To Calculate:

Increase in Days Payable outstanding if accounts payables are increased by 8%

Answer 6

Chapter D, 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 formula:

Day’s payable outstanding = Accounts Payable * 365Cost of Sales

Requirement-1:

To Calculate:

Days Payable outstanding for Current Year

Answer 7

Chapter D, 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 formula:

Day’s payable outstanding = Accounts Payable * 365Cost of Sales

Requirement-1:

To Calculate:

Days Payable outstanding for Current Year

Answer 8

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 formula:

Day’s payable outstanding = Accounts Payable * 365Cost of Sales

Requirement-2:

To Calculate:

Reduction in Days Payable outstanding if accounts payables are reduced by 8%

Answer 9

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 formula:

Day’s payable outstanding = Accounts Payable * 365Cost of Sales

Requirement-2:

To Calculate:

Reduction in Days Payable outstanding if accounts payables are reduced by 8%

Answer 10

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 formula:

Day’s payable outstanding = Accounts Payable * 365Cost of Sales

Requirement-3:

To Calculate:

Increase in Days Payable outstanding if accounts payables are increased by 8%

Answer 11

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 formula:

Day’s payable outstanding = Accounts Payable * 365Cost of Sales

Requirement-3:

To Calculate:

Increase in Days Payable outstanding if accounts payables are increased by 8%

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 15

Ch. D - Prob. 1QS Ch. D - Prob. 2QS Ch. D - Prob. 3QS Ch. D - Prob. 4QS Ch. D - Prob. 5QS Ch. D - Prob. 6QS Ch. D - Prob. 7QS Ch. D - Prob. 8QS Ch. D - Prob. 9QS Ch. D - Prob. 10QS

Videos

Want to see the full answer?

Chapter D Solutions