(Solved):Q: Compute days’ pa…

Question:

Question

Compute days’ payable outstanding and explain its use in assessing payments to suppliers.

Expert Answer:

Step 1

Days payable outstanding (DPO) is a financial ratio that shows the average time (in days) that a business takes to pay its bills and invoices to its trade creditors, which may include suppliers or vendors. 

Step 2

Days payable outstanding

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