Chastain Corporation is trying to determine the effect of its inventory turnover ratioand days sales outstanding DSO) on its cash conversion cycle. Chastains 2016 sales (all on credit) were $251,000; its cost of goods sold is 80% of sales; and it earned a net profit of 7%, or $17,570. IT turned over its inventory 4 times durng the year, and its DSO was 32.5 days. THe firm had fixed assets totaling $26,000. Chastains payables defferal period is 35 days. Assume 365 days in a year for your calculations.

a. Calculate chastains cash conversion cycle. Round to 2 decimal places.

_______ days?

B. Assuming chastain holds negligible amounts of cash and marketable securities, calculate its total assets turnover and ROA. Round to two decimal places.

Total assets turnover ______?

ROA _________%?

C. Suppose Chstains managers believer that the inventory turnover can be raised to 9.8 times. What would chastains cash conversion cycle, total assets turnover, and ROA have been if the inventory turnover had been 9.8 for 2016? Round to two decimails

Cash conversion cycle ________days?

Total assets turnover _________?

ROA _______%?