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Days Payable Outstanding (DPO)= Average Accounts Payable -: Cost of Goods Sold...

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Accounting

Days Payable Outstanding (DPO)= Average Accounts Payable -: Cost of Goods Sold per day
This ratio refers to the average number of days it takes a company to pay back its accounts pyables. It measures how well the company is managing its accounts payable. A DPO of 20 means that, om average, the company takes 20 days to pay back its suppliers. The ratio is computed by dividing the average Accounts Payable for the year (average accounts payable = average of the beginning balance of accounts payable and ending balance of accounts payable) divided by the Cost of Goods Sold per day (also referred to as Cost of Sales or Merchandise Costs or Cost of Products Sold). Assume 365 days in a year.
Which of the following companies has the highest Days Payable Outstanding?
Group of answer choices
Costco Wholesale Corporation (for the year ended Aug 28,2022)
CVS Health Corporation (for the year ended December 31,2021)
The Home Depot, Inc. (for fiscal 2021)
Target Corporation (for the year 2021)

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