If the operating cycle is 80 days and the net operating cycle is 50 days, the days payable outstanding (DPO) is equal to how many days?

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Multiple Choice

If the operating cycle is 80 days and the net operating cycle is 50 days, the days payable outstanding (DPO) is equal to how many days?

The key idea is that the net operating cycle accounts for the financing you get from paying suppliers later. It is the operating cycle minus the days you can delay payments (days payable outstanding). So, DPO = OC − NOC = 80 − 50 = 30 days. This means, on average, the company takes 30 days to pay its suppliers.

If the operating cycle is 80 days and the net operating cycle is 50 days, the days payable outstanding (DPO) is equal to how many days?

Prepare for your Financial Statement Modeling Test. Utilize flashcards and multiple choice questions with detailed explanations. Ace your exam with thorough preparation!

If the operating cycle is 80 days and the net operating cycle is 50 days, the days payable outstanding (DPO) is equal to how many days?

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