Trojan Importing imports exotic items from Europe and sell the items to the local specialty stores. The average daily sales is $6,000. On average, the company has $300,000 in the account receivable and typically pays the European supplier 60 days after receiving goods from the supplier. On average, inventory days of supply (DSO) for Trojan Importing is 20 days. Assume 30 days a month. Which of the following statements is TRUE A) None of the other options. B) The company receives payment from the buyer 50 days after selling to the buyer. C) Cash conversion cycle is 0 days. D) The average account payable is more than the average account receivable, $300,000.
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