C.Company is trying to determine the effect of its inventory turnover ratio and days sales outstanding (DSO) on its cash conversion cycle. Chris's 2016 sales (all on credit) were $213,000; its cost of goods sold is 80% of sales; it earned a net profit of 5%, or $10,650. It turned over its inventory 6 times during the year, and its DSO was 36.5 days. The firm had fixed assets totaling $45,000. Chris's payables deferral period is 45 days. Assume 365 days in the year for your calculations.

a. Calculate Chris's cash conversion cycle. (Round to 2 decimal places. Do not round intermediate calculations)

b. Assuming Chris holds negligible amounts of cash and marketable securities, calculate its total assets turnover and ROA. (Round to 2 decimal places. Do not round intermediate calculations)

Total Assets Turnover =?

ROA = ___ %

c. Suppose Chris's managers believe that the inventory turnover can be raised to 9.7 times. What would Chris's cash conversion cycle, total assets turnover, and ROA have been if the inventory turnover had been 9.7 for 2016? (Round to 2 decimal places. Do not round intermediate calculations)

Cash Conversion Cycle		days
Total Assets Turnover
ROA %