Wentz Company made it a priority to negotiate better credit terms with its suppliers so it could defer payments longer. Year 2 Year 1 Accounts payable $ 7,134 $ 4,416 Cost of goods sold 62,000 52,000 (a) Use the above information for Wentz Company to compute days’ payable outstanding for Year 1 and for Year 2. (b) Does Wentz Company appear to have negotiated better credit terms in Year 2 than in Year 1?

Wentz Company made it a priority to negotiate better credit terms with its suppliers so it could defer payments longer. Year 2 Year 1 Accounts payable $ 7,134 $ 4,416 Cost of goods sold 62,000 52,000 (a) Use the above information for Wentz Company to compute days’ payable outstanding for Year 1 and for Year 2. (b) Does Wentz Company appear to have negotiated better credit terms in Year 2 than in Year 1?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

	Year 2	Year 1
Accounts payable	$ 7,134	$ 4,416
Cost of goods sold	62,000	52,000

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