Data on Mertz Co

question 128

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.

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

Calculate complement rates and equivalent single discount rates.

Utilize the complement method for determining net prices.

Understand and apply rounding rules in financial calculations.

Compute discount dates and due dates in cash discount scenarios.

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