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Chastain Corporation is trying to determine the effect of its inventory turnover ratio and days sales outstanding (DSO) on its cash conversion cycle. Chastain's 2016

Chastain Corporation is trying to determine the effect of its inventory turnover ratio and days sales outstanding (DSO) on its cash conversion cycle. Chastain's 2016 sales (all on credit) were $130,000; its cost of goods sold is 80% of sales; and it earned a net profit of 8%, or $10,400. It turned over its inventory 4 times during the year, and its DSO was 37.5 days. The firm had fixed assets totaling $32,000. Chastain's payables deferral period is 45 days. Assume 365 days in year for your calculations.

A. Calculate Chastain's cash conversion cycle. Round your answer to two decimal places. Do not round intermediate calculations. days

B. Suppose Chastain's managers believe that the inventory turnover can be raised to 8.4 times. What would Chastain's cash conversion cycle, total assets turnover, and ROA have been if the inventory turnover had been 8.4 for 2016? Round your answers to two decimal places. Do not round intermediate calculations.

Cash conversion cycle days
Total assets turnover
ROA %

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