a. Define the Days Payables Outstanding (DPO) and highlight about good working capital management b. Determine...

 

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a. Define the Days Payables Outstanding (DPO) and highlight about good working capital management b. Determine the formula used for Days payables outstanding (DPO) for a Year C. Calculate days payables outstanding for Company A and Company B using the information given below and tell what it tells about the companies. Inventories at 1 January 2013 Inventories at 31 December 2013 Cost of goods sold Purchases Accounts payable at 1 January 2013 Accounts payable at 31 December 2013 Current ratio Quick ratio Company A $200,000 100,000 4,000,000 250,000 400,000 d. Analysing Final Management Position 2.00 1.00 Company B $2,000,000 250,000 400,000 0.50 0.30 a. Define the Days Payables Outstanding (DPO) and highlight about good working capital management b. Determine the formula used for Days payables outstanding (DPO) for a Year C. Calculate days payables outstanding for Company A and Company B using the information given below and tell what it tells about the companies. Inventories at 1 January 2013 Inventories at 31 December 2013 Cost of goods sold Purchases Accounts payable at 1 January 2013 Accounts payable at 31 December 2013 Current ratio Quick ratio Company A $200,000 100,000 4,000,000 250,000 400,000 d. Analysing Final Management Position 2.00 1.00 Company B $2,000,000 250,000 400,000 0.50 0.30

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a Days Payables Outstanding DPO is a measure of the average number of days that a company takes to p... View the full answer