Data on Wentz Inc

question 38

Multiple Choice

Data on Wentz Inc. for 2012 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 = $75,000
Payables = $5,000
Payables deferral period (PDP) = 24.33
Benchmark payables deferral period = 30.00

• A) $ 764
• B) $ 849
• C) $ 943
• D) $1,048
• E) $1,164

---

Definitions:

In Vitro Fertilization

A medical procedure where an egg is fertilized by sperm outside the body, in a laboratory.

Mental Retardation

An outdated and now considered offensive term for intellectual disability, characterized by significant limitations in intellectual functioning and adaptive behavior.

XYY Syndrome

A genetic condition in males characterized by an extra Y chromosome, which can lead to tall stature, learning difficulties, and other physical and developmental differences, but many may have minimal symptoms.

Hemophilia

A genetic disorder that impairs the body's ability to make blood clots, leading to excessive bleeding from minor injuries.