What is Horizon Industries cash conversion cycle on these accounting question? Horizon Industries has the following data:.Days of sales outstanding: 28.2 daysDays of inventory on hand: 50.4 days⚫ Days of payables: 37.6 daysThe firm allows its buyers to pay balances owed in 35 days. What isHorizon Industries' cash conversion cycle?A. 65.0 daysB. 40.2 daysC. 35.0 daysD. 41.0 days

Step 1: Define Cash Conversion CycleThe cash conversion cycle (CCC) measures the time it takes for a…

Answered: Horizon Industries has the following…

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter16: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 11P

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Negus Enterprises has an inventory conversion period of 50 days, an average collection period of 35 days, and a payables deferral period of 25 days. Assume that cost of goods sold is 80% of sales. What is the length of the firm’s cash conversion cycle? If annual sales are $4,380,000 and all sales are on credit, what is the firm’s investment in accounts receivable? How many times per year does Negus Enterprises turn over its inventory?
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