In Practice Exam 1 in Question 6, when trying to solve for "DPO" and before that "Payables Turnover", how did you find the "Purchases" value as 2637 from the income statement to put in the numerator for "Payables Turnover"?

Hi Nadir, thank you for this question, we will update the explanation shortly. You can find the Purchases* amount using the following formula: *Purchases = Closing inventory balance – Opening inventory balance + COGS = $409 – $482 + $2,710 = $2,637 I hope this helps. Best, The 365 Team

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Nadir Jumani

Last answered:

07 Mar 2023

Posted on:

05 Mar 2023

Resolved: Payables Turnover

in Financial Ratio Analysis / DuPont Analysis

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Antoniya Baltova

Instructor

Posted on:

07 Mar 2023

Resolved: Payables Turnover

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