Strickler's sales last year were $3,250,000 (all on crediStrickler Technology is considering changes in its working capital policies to improve its cash flow cycle.t), and its net profit margin was 7%. Its inventory turnover was 6.0 times during the year, and its DSO was 41days. Its annual cost of goods sold was $1,800,00. The firm had fxed assets totaling $535,000. Strickler's payables deferred period is 45 days.
a. Calcualte Strickler's cash conversion cycle.
b. Assuming Strickler holds negligible amounts of cash and marketable securities, calcualte its total assets turnover and ROA.
c. Suppose Strickler's manager believe the annual inventory turnover can be raised to 9 times without affecting sales. What would Strickler's cash conversion cycle, total assets turnover, and ROA have been if the inventory had been 9 for the years?