Data on Wentz Inc

question 60

Multiple Choice

Data on Wentz Inc.for last 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. ​

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

---

Definitions:

Budgeted Balance Sheet

A financial statement that projects the financial position of a company at a future date, showing expected assets, liabilities, and equity balances.

Cash Number

A numerical value representing the amount of liquid assets or cash available to an entity at a specific point in time.

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period, usually used to assess liquidity.

Budget Committee

A group of key managers who are responsible for overall budgeting policy and for coordinating the preparation of the budget.