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Interpretation of Financial Statements (Ratio Analysis)

This topic has 1 reply, 2 voices, and was last updated 10 years ago by John Moffat.

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October 18, 2014 at 9:09 am #204793
Zeshan
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- Topics: 10
- Replies: 10
Why don’t we calculate the purchases and use it for the payables period calculation instead of using cost of sales?
October 18, 2014 at 9:36 am #204804
John Moffat
Keymaster
- Topics: 57
- Replies: 54500
We do if the information is available!
You also asked this question as a comment under the relevant lecture and I have explained in my reply to your comment why we did not do it in that example.
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