What was Lisa's days payable outstanding for Mary's job?

Days Payable Outstanding (DPO) is a financial metric that measures the average number of days a company takes to pay its suppliers. The formula for calculating DPO is:

DPO = (Accounts Payable / Cost of Goods Sold) x Number of Days

To determine Lisa's DPO for Mary's job, you'll need to consider the amount of accounts payable associated with the job and the corresponding cost of goods sold. If the solution indicates that Lisa's DPO is 18 days, this implies that, on average, it takes her 18 days to settle her obligations to suppliers specifically for Mary’s job.

This metric is crucial because it provides insight into a company's cash flow management and its operational efficiency. A DPO of 18 days suggests a well-managed payment process, allowing Lisa to maintain supplier relationships while managing working capital effectively. Understanding DPO helps in assessing how long a business retains cash before making payments, which is critical for maintaining overall financial health.