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A companys Days Payables Outstanding (DPO) has been rising for the past five years. What does this potentially indicate? Select one: A. The suppliers have
A companys Days Payables Outstanding (DPO) has been rising for the past five years. What does this potentially indicate?
Select one:
A. The suppliers have cut back on the credit they provide
B. The company is paying its suppliers early to take advantage of an early pay discount
C. The company might have a cash shortage and is slow-paying its suppliers
D. The suppliers are allowing extended payment terms which the company is taking advantage of
E. Both C. and D. are potential reasons for why the DPO is rising
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