payables deferral period
The balance in Gigantic Inn’s (GI) accounts payable averages $164,000, and its payables deferral period (DPO) is 10 days. (a) How much does GI normally purchase each day from its suppliers. (b) If GI’s opportunity cost is 8 percent, how much can the company save if it can increase its DPO by five days?
payables deferral period