Question: Using the information provided, what is the DPO for the firm? Perfect Purchase Electronics Selected Income Statement Items, 2018 Cash Sales $1,500,000 Credit Sales $7,500,000

Using the information provided, what is the DPO for the firm?

Perfect Purchase Electronics

Selected Income Statement Items, 2018

Cash Sales $1,500,000

Credit Sales $7,500,000

Total Sales $9,000,000

COGS $6,000,000

Perfect Purchase Electronics

Selected Balance Sheet Accounts

12/31/2018

Accounts Receivable $270,000

Inventory $125,000

Accounts Payable $100,000

a.

4.06 days
b.

4.87 days
c.

6.08 days
d.

24.33 days

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