Key figures for Samsung and Google follow.

Required

1. Compute Samsung’s days’ payable outstanding for the most recent two years.

2. Assuming Samsung is not at risk of damaging its relationships with suppliers, does it prefer days’ payable outstanding to increase or decrease?

3. For the current year, did Samsung or Google take more time to pay its suppliers (based on days’ payable outstanding)?

Transcribed Image Text:

Google Samsung Current Year Prior Year In millons Accounts payable. Cost of goods sold . Current Year W 6,485,039 120,277,715 $ 3,137 45,583 W 9,083,907 129,290,661