The payables deferral period

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Data on Wentz Inc. for 2008 are shown below, along with the payables deferral period (PDP) for the firms against which it benchmarks. The firm's new CFO believes that the company could delay payments enough to increase its PDP to the benchmarks' average. If this were done, by how much would payables increase? Use a 365-day year. Cost of goods sold = $70,000 Payables = $5,000 Payables Deferral Period (PDP) = 26.07 Benchmark Payables Deferral Period = 30.00

Reference no: EM131025480

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