Horizon Industries has the following data: . Days of sales outstanding: 28.2 days Days of inventory on hand: 50.4 days ⚫ Days of payables: 37.6 days The firm allows its buyers to pay balances owed in 35 days. What is Horizon Industries' cash conversion cycle? A. 65.0 days B. 40.2 days C. 35.0 days D. 41.0 days
Horizon Industries has the following data: . Days of sales outstanding: 28.2 days Days of inventory on hand: 50.4 days ⚫ Days of payables: 37.6 days The firm allows its buyers to pay balances owed in 35 days. What is Horizon Industries' cash conversion cycle? A. 65.0 days B. 40.2 days C. 35.0 days D. 41.0 days
Chapter16: Supply Chains And Working Capital Management
Section: Chapter Questions
Problem 11P
Related questions
Question
What is Horizon Industries cash conversion cycle on these accounting question?

Transcribed Image Text:Horizon Industries has the following data:
.
Days of sales outstanding: 28.2 days
Days of inventory on hand: 50.4 days
⚫ Days of payables: 37.6 days
The firm allows its buyers to pay balances owed in 35 days. What is
Horizon Industries' cash conversion cycle?
A. 65.0 days
B. 40.2 days
C. 35.0 days
D. 41.0 days
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps

Recommended textbooks for you

Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning

Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning