Chastain Corporation is trying to determine the effect of its inventory turnover ratio and days sales outstanding (DSO) on its cash conversion cycle. Chastains 2016 sales (all on credit) were $121,000; its cost of goods sold is 80% of sales; and it earned a net profit of 2%, or $2,420. It turned over its inventory 7 times during the year,and its DSO was 37 days. The firm had fixed assets totaling $42,000. Chastains payables deferral period is 35 days. a. Calculate Chastains cash conversion cycle.

b. Assuming Chastain holds negligible amounts of cash and marketable securities, calculate its total assets turnover and ROA.

c.Suppose Chastains managers believe that the inventory turnover can be raised to 9.9 times. What would Chastains cash conversion cycle, total assets turnover, and ROA have been if the inventory turnover had been 9.9 for 2016?