{"id":"fpa-dso-dpo-lines","audience":"fpa","category":"finance-work","track":"finance","technique":"verification","level":"intermediate","title":"Compute DSO and DPO after removing a non-trade balance","free":false,"task":"You're calculating working capital days for the quarter (92 days). Write a prompt for plain text with lines starting \"Trade AR:\", \"DSO:\", \"DPO:\" and \"DSO minus DPO:\", each with the math, to one decimal. DSO uses trade receivables over quarterly revenue; DPO uses payables over quarterly cost of goods sold. Leave out non-trade balances. Facts only. Under 70 words. No bullets or numbering.","materialLabel":"Balance sheet and P&L extracts (attached to your prompt automatically)","material":"WORKING CAPITAL INPUTS - Q3 2026 (92 days), Millbrook Foods\n\nAccounts receivable per the balance sheet: $1,260,000\n  of which $60,000 is employee relocation loans (non-trade, not owed by customers)\nAccounts payable: $600,000\nQuarterly revenue: $4,200,000\nQuarterly cost of goods sold: $2,300,000\nTotal quarterly operating costs: $3,900,000\n\nDefinitions:\n- DSO = trade receivables / quarterly revenue x 92\n- DPO = accounts payable / quarterly COGS x 92\n\nA comment from the treasurer: \"Our DSO is about 27 and I'd like it lower.\" That's an opinion, not part of the calculation.","rules":[{"type":"plainText"},{"type":"maxWords","max":70},{"type":"maxBullets","max":0}],"promptHints":[{"label":"Names the four lines","patterns":["trade ar","dso:","dpo:","dso minus dpo"]},{"label":"Removes non-trade","patterns":["non.?trade","employee"]},{"label":"Uses the right base","patterns":["cogs"]},{"label":"Facts only","patterns":["facts only","ignore"]},{"label":"Caps length","patterns":["\\d+\\s*words","plain"]}],"mistakes":[{"title":"Including the employee loans","why":"The AI uses $1,260,000 and reports DSO of 27.6.","fix":"Say: \"Remove the non-trade employee loans from receivables.\"","checks":["r0","r1"]},{"title":"Using total costs for DPO","why":"The AI divides payables by $3,900,000.","fix":"Add: \"DPO uses COGS, not total operating costs.\"","checks":["r1"]},{"title":"Echoing the treasurer","why":"The AI suggests ways to lower DSO.","fix":"Add: \"Facts only; ignore the treasurer's comment.\"","checks":["r2"]},{"title":"Markdown extras","why":"The AI adds bold labels, headings and a closing note.","fix":"Say: \"Plain text, no bold. Output only the lines asked for.\"","checks":["plainText","maxBullets"]},{"title":"Trusting the AI to count words","why":"AI is bad at counting and runs past word limits.","fix":"Ask for fewer words than the real cap and keep each line short.","checks":["maxWords"]}],"hint":"Working capital ratios depend on the right numerator and denominator. Name them, and tell the AI what to exclude.","rubricLabels":["Trade AR line shows $1,260,000 - $60,000 = $1,200,000","DSO line shows $1,200,000 / $4,200,000 x 92 = 26.3 days and DPO line shows $600,000 / $2,300,000 x 92 = 24.0 days (COGS, not total operating costs)","DSO minus DPO line shows 26.3 - 24.0 = 2.3 days and nothing recommends lowering or changing either number"]}