answersLogoWhite
Investing and Financial Markets

How do you find days payable outstanding?


Top Answer
User Avatar
Wiki User
Answered 2008-09-26 04:17:53

Indicates how the firm handles obligations of its suppliers. · Formula Ending Accounts Payable

Purchases / 365

001
๐Ÿ™
0
๐Ÿคจ
0
๐Ÿ˜ฎ
0
๐Ÿ˜‚
0
User Avatar

Your Answer

Still Have Questions?

Related Questions

What is mean by payable and outstanding payable?

Those expenses have to pay pay


How do you find Deduction Days Outstanding?

(Deduction outstanding/Deductions incurred)*no. of days analysed


What is Outstanding expenses journal entry?

Debit outstanding expensesCredit expenses payable


How do you calculate the net trade cycle?

Calculated as follows: Average collection period+ Days inventory held- Days payable outstanding= net trade cycle


What is the Journal entry for outstanding rent paid?

outstanding rent


What is the journal entry for outstanding wages?

debit wages expensescredit wages payable


What is the journal entry for outstanding salaries?

outstanding salaries a/c....................dr to outstanding expenses


Journal entry for outstanding expenses?

Expenses a/c dr to outstanding expenses a/c


What is journal entry of outstanding rent?

outstanding rent account dabit to Mr ashwin


How do you pass journal entry of salary payable?

debit salary expensecredit salary payable


What are synonyms for due?

expected, scheduled, fitting, deserved, payable, outstanding, owing, unpaid


What entry of outstanding salary paid?

[Debit] Accrued salary payable [Credit] Cash / bank


What is the journal entry for the outstanding salary paid?

debit salary payableCredit cash / bank


What is the journal entry for Outstanding amount owing to Office Supplies?

debit office suppliescredit accounts payable


What is the Journal entry for outstanding rent?

debit rent expensecredit rent payable


What is net 15?

Payable within 15 days.


What is journal entry of outstanding expenses?

Outstanding expenses are those which are yet to be paid in current financial year. Journal entry would be Expenses a/c dr to Outstanding expenses a/c Outstanding expenses should be crecdited because its a liability for the company.


Where could one find an Accounts Payable Manager job?

There are a number of resources that one can use to find an Accounts Payable Manager job. For example, Workopolis, Career Builder, and the Accounts Payable Network all have information about Accounts Payable Manager jobs.


What does the mean of M30 payment terms?

Payable in 30 days


What are maturities?

Maturities of debt instruments, such as bonds, loans, or notes payable, are the amounts of time outstanding before the debt becomes due.


The firm can reduce its cash conversion cycle by?

There are three parts to a firm's cash conversion cycle. The formula is: Inventory Days on Hand + Average Collection Period - Days Payable Outstanding = Cash Conversion Cycle Each part split up: Inventory Days on Hand = Inventory / Daily Cost of Goods Sold (COGS) Average Collection Period = Accounts Receivable / Daily Sales Days Payable Outstanding = Accounts Payable / Daily COGS If the first two parts are reduced by one day, the firm will free up the amount of cash equal to Daily Cost of Goods Sold and Daily Sales respectively. If the firm increases its Days Payable Oustanding by one day, it will free up the amount of cash equal to Daily COGS. In order to reduce the cash conversion cycle (increase current cash on hand) a firm can either decrease Inventory Days on Hand, decrease Average Collection Period or increase Days Payable Outstanding. By doing one, or a combination of these, a firm will increase the amount of cash on hand and may be able to use this to pay of current liabilities or use this cash for expenses, growth or dividend payments. How to decrease Inventory Days on Hand: - Implement a lean manufacturing process or somehow increase efficiency. Just-in-time inventory is the most efficient, but usually it is unrealistic for a firm not to have any inventory How to decrease Average Collection Period: - Find a way to collect payments from customers soon - Possibly award small discounts if customers pay sooner - Write letters or find a way to collect from customers sooner - may not want to damage customer relations, but if a customer isn't paying you may have to hiring a collection agency (last resort) - Get rid of any billing errors or inefficiencies How to increase Days Payable Outstanding: - Delay payments to suppliers - may have to forgo a discount These are just a few of the main actions a business can take to reduce its cash conversion cycle. It is important for a business to check here first if they need extra capital before turning to loans or selling equity.


Is Notes payable due in 120 days a current liability?

Yes.


What are the element of a working capital and give ten examples of each?

cash account receivabble inventary or stock outstanding expenses and payable taxesType your answer here...


How do you find out if you have an outstanding ticket?

that's obviously. if you don't pay the ticket.its an outstanding ticket


What does the accounting abbreviation DRO mean?

Days Revenue Outstanding


Still have questions?