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A firm has revenues of $8,000,000 and COGS = 50% of revenues. Receivables = $800,000,...

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Question

Finance

A firm has revenues of $8,000,000 and COGS = 50% of revenues. Receivables = $800,000, Inventory = $500,000, and Payables = $300,000. What is days payables outstanding? The firms treasury manager would like to increase the days payables outstanding by 2 days through an increase in payables. What would the new payables amount be if they could increase DPO by 2 days?

a.

$321,973

b.

$22,192

c.

$310,182

d.

$522,000

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