Lets say a company has $80m in COGS and an average balance of $16m in accounts payable. If the days payable outstanding (DPO) is straight-lined across the forecast what is the projected A/P balance if COGS is anticipated to be $100mm? Assume the DPO formula uses the average between the beginning and ending balance of A/P, and 365 for the number of days in a period.

Possible Answers:

A. $19.6mm

B. $19.8mm

C. $20.0mm

D. $20.2mm