A local retailer has Accounts Payable of $46,700 and Cost of Goods Sold of $355,000. Calculate their days' payable outstanding. Assess what the calculated days' payable outstanding implies about the company's available cash and relationship with suppliers. Assume last year its days' payable outstanding was 40 days.

Answer rating: 100% (QA)

To calculate the Days Payable Outstanding DPO we use the formula Days Payable Outstanding Average Ac... View the full answer