It would seem that Commerce Bank has a strong incentive to install bandit barriers to deter robberies? Why: then, wouldn't they
1 answer:
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Answer:
44 days
Explanation:
Given: Number of days outstanding= 365
Ending Accounts payable=
Cost of goods sold (COGS)=
We always consider ending account payable amount while calculating days payable outstanding (DPO), as it is the amount that is payable to the vendor, supplier, etc. at the end of the period.
Formula;
Days payable outstanding (DPO)= ≅
∴ Barry bee´s average number of days payable outstanding are 44 days.
Days payable outstanding are calculated to know how company is managing the cash flow and account payable. Company with higher DPO takes higher number of days to pay it´s creditor, vendor, etc.