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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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? 

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