I'm working through an exercise right now that lists COGS in an absolute dollar amount on the income statement, and lists D&A as a % of revenue.
What I'm wondering is if you calculate Days Payable Outstanding and Days Inventory Held by using COGS, or COGS + D&A, and why?
Thank you all VERY much as always, MG
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I have never come across calculating DPO and DIO using COGS + D&A so I would stick with just COGS.
Thank you
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