Horizon Manufacturing has an inventory conversion period of 64 days, an average collection period of 45 days, and a payables deferral period of 32 days. a) What is the length of the cash conversion cycle? b) If Horizon's annual sales are $5,840,000 and all sales are on credit, what is the investment in accounts receivable? c) How many times per year does Horizon turn over its inventory?

Horizon Manufacturing has an inventory conversion period of 64 days, an average collection period of 45 days, and a payables deferral period of 32 days. a) What is the length of the cash conversion cycle? b) If Horizon's annual sales are $5,840,000 and all sales are on credit, what is the investment in accounts receivable? c) How many times per year does Horizon turn over its inventory?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter21: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 11P: Negus Enterprises has an inventory conversion period of 50 days, an average collection period of 35...

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