Suppose Horizon Industries has annual sales of $7.20 million, cost of goods sold of $3.15 million, average inventories of $1,320,000, and average accounts receivable of $750,000. Assuming that all of Horizon's sales are on credit, what will be the firm's inventory turnover ratio and accounts receivable turnover ratio?
Suppose Horizon Industries has annual sales of $7.20 million, cost of goods sold of $3.15 million, average inventories of $1,320,000, and average accounts receivable of $750,000. Assuming that all of Horizon's sales are on credit, what will be the firm's inventory turnover ratio and accounts receivable turnover ratio?
Chapter16: Supply Chains And Working Capital Management
Section: Chapter Questions
Problem 11P
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Transcribed Image Text:Suppose Horizon Industries has annual sales of $7.20 million, cost of goods sold of
$3.15 million, average inventories of $1,320,000, and average accounts receivable
of $750,000. Assuming that all of Horizon's sales are on credit, what will be the
firm's inventory turnover ratio and accounts receivable turnover ratio?
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