Strickler Technology is considering changes in its working capital policies to improve its cash flow cycle. Strickler's sales last year were $110,000 (all on credit), and it earned a net profit of 6%.
Its inventory turnover was 7.58025 times during the year, and its DSO was 32 days. Its annual cost of goods sold was $121,284. The firm had fixed assets totaling $25,000.
Strickler's payables deferral period is 40 days. Assume 365 days in year for your calculations. Do not round intermediate calculations.
Calculate its ROA. Round your answer to two decimal places. _________ %