Question: Question # 8 Data on Wallace Inc. for last year are shown below, along with the payables deferral period (PDP) for the firms against which

Question # 8

Data on Wallace 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. Do not round your intermediate calculations.

Cost of goods sold =	$78,000
Payables =	$5,000
Payables Deferral Period (PDP) =	23.40
Benchmark Payables Deferral Period =	40.00

a. $3,000

b. $4,096

c. $8,000

d. $8,548

e. $3,548

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