Data on Mertz Co A) $764
B) $849
C) $943
D) $1,048
E) $1,164

question 25

Multiple Choice

Data on Mertz Co.for the most recent year 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. $\begin{array}{lr}\text { Cost of goods sold = } & \$ 75,000 \\\text { Payables }= & \$ 5,000 \\\text { Payables deferral period (PDP) = } & 24.33 \\\text { Benchmark payables deferral period }= & 30.00\end{array}$

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

Comprehend the ability of email to facilitate mass communication efficiently.

Recognize the security risks associated with email, including virus transmission.

Understand the advantages of email in attaching and sharing files promptly.

Realize the limitations of email regarding privacy, security, and emotional sensitivity.

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Definitions:

Quick Ratio

A liquidity ratio that measures a company's ability to meet short-term obligations with its most liquid assets, calculated as (Cash + Marketable Securities + Receivables) / Current Liabilities.

Current Assets

Resources anticipated to be transformed into cash, disposed of, or used up within the span of one year or throughout the duration of the operating cycle, depending on which of the two periods extends further.

Current Liabilities

Financial obligations or debts a company is due to pay within a year.

Product Warranty

A promise made by a seller to a buyer to repair or replace a product within a specific time frame if it is found to be defective.