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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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
