Wentz Co. made it a priority to negotiate better credit terms with its suppliers so it could defer payments longer.

(a) Use the following information for Wentz Co. to compute days’ payable outstanding for Year 1 and Year 2.

(b) Does Wentz Co.appear to have negotiated better credit terms in Year 2 than in Year 1?

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Year 2 Year 1 Accounts payable Cost of goods sold ...... $ 4,110 50,000 .... $ 2,740 40,000