Lights out utilities lou purchases 15000 in raw materials, Finance Basics

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Lights out utilities lou purchases 15000 in raw materials

Lights Out Utilities (LOU) purchases $15,000 in raw materials from its suppliers each day. LOU's accounts payable turnover is 12.

(a) What is LOU's payables deferral period (DPO)?

(b) What is the average accounts payable balance that is reported on LOU's financial statements?

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Finance Basics: Lights out utilities lou purchases 15000 in raw materials

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Finance Basics: Lights out utilities lou purchases 15000 in raw materials

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