Data on Wentz Inc

question 90

Multiple Choice

Data on Wentz Inc. for 2011 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.

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

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Definitions:

Cognitive Dissonance Theory

A psychological theory suggesting that individuals experience discomfort when holding two or more contradictory beliefs, attitudes, or values, leading them to attempt to reduce the dissonance.

Theory of Planned Behavior

A theory in psychology that forecasts a person's likelihood of performing a specific action at a given time and location, taking into account their attitudes, societal expectations, and their sense of control over the behavior.

Psychological Reactance

A motivational reaction to offers, persons, rules, or regulations that threaten or eliminate specific behavioral freedoms.

Resistance Effect

A phenomenon where individuals or groups oppose change or policies, often due to perceived threat to autonomy or norms.