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(7A) Negus Enterprises has an inventory conversion period of 53 days, an average collection period of 37 days, and a payables deferral period of 28

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(7A) Negus Enterprises has an inventory conversion period of 53 days, an average collection period of 37 days, and a payables deferral period of 28 days. Assume that cost of goods sold is 80% of sales. Assume a 365-day year. Do not round intermediate calculations. a. What is the length of the firm's cash conversion cycle? Round your answer to the nearest whole number. days b. If annual sales are $4,161,000 and all sales are on credit, what is the firm's investment in accounts receivable? Round your answer to the nearest dollar. c. How many times per year does Negus Enterprises turn over its inventory? Round your answer to two decimal places. (7B) Strickler Technology is considering changes in its working capital policies to improve its cash flow cycle. Strickler's sales last year were $3,080,000 (all on credit), and its net profit margin was 8%. Its inventory turnover was 6.0 times during the year, and its DSO was 35 days. Its annual cost of goods sold was $1,800,000. The firm had fixed assets totaling $555,000. Strickler's payables deferral period is 39 days. Assume a 365-day year. Do not round intermediate calculations. a. Calculate Strickler's cash conversion cycle. Round your answer to two decimal places. days b. Assuming Strickler holds negligible amounts of cash and marketable securities, calculate its. total assets turnover and ROA. Round your answers to two decimal places. Total assets turnover: ROA: c. Suppose Strickler's managers believe the annual inventory turnover can be raised to 8 times without affecting sale or profit margins. What would Strickler's cash conversion cycle, total assets turnover, and ROA have been if the inventory turnover had been 8 for the year? Round your answers to two decimal places. Cash conversion cycle: days Total assets turnover: x

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