Working Capital Cash Flow Cycle Strickler Technology is considering changes in its working capital policies to improve its cash flow cycle. Strickler's sales last year were $160,000 on credit), and it earned a net profit of 7%.
Its inventory turnover was 6.4 times during the year, and its Dso was 35.5 days. Its annual cost of goods sold was $121,065. The firm had fixed assets totaling $53,000.
Strickler's payables deferral period is 41 days. Assume 365 days in year for your calculations. Do not round intermediate calculations.
a. Calculate Strickler's cash conversion cyde. Round your answer to two decimal places. days
b. Assuming Strickler holds neglioible amounts of cash and marketable securities, calculate its total assets turnover. Round your answer to two decimal places. Calculate its ROA. Round your answer to two decimal places.
c. Suppose Strickler's managers believe that the inventory turnover can be raised to 8 times without affecting sales and cost of goods sold. What would Strickler's cash conversion cycle have been if the inventory turnover had been 8 for the year? Round your answer to two decimal places. days
What would Stricklers total assets turnover have been if the inventory turnover had been 8 for the year? Round your answer to two decimal places
What would Stricklers ROA have been if the inventory tumower had been a for the year? Round your answer to two decimal places.