What will be the firm's operating cycle on these financial accounting question? Suppose that Horizon Manufacturing has annual sales of $9.25million, cost of goods sold of $4.85 million, average inventories of$1,750,000, and average accounts receivable of $925,000. Assumingthat all of Horizon's sales are on credit, what will be the firm'soperating cycle?

The operating cycle measures the time it takes for a company to purchase inventory, sell it, and…

Answered: Suppose that Horizon Manufacturing has…

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter22: Providing And Obtaining Credit

Section: Chapter Questions

Problem 2MC

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Suppose that Horizon Manufacturing has annual sales of $9.25 million, cost of goods sold of $4.85 million, average inventories of $1,750,000, and average accounts receivable of $925,000. Assuming that all of Horizon's sales are on credit, what will be the firm's operating cycle?