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A firm's new CFO believes that the company could delay payments enough to increase its Payables Deferral Period to the benchmarks' average (see table below).
A firm's new CFO believes that the company could delay payments enough to increase its Payables Deferral Period to the benchmarks' average (see table below). If this were done, by how much would payables increase? Use a 365-day year. Do not round your intermediate calculations. Cost of goods sold = $79,000 Payables = $5,000 Payables Deferral Period (PDP) = 23.101 Benchmark Payables Deferral Period = 30.000
$1,418
$1,493
$1,523
$1,732
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