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eBook Chastain Corporation is trying to determine the effect of its inventory turnover ratio and days sales outstanding ( DSO ) on its cash conversion
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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 sales all on credit were $ its cost of goods sold is of sales, and it earned a net profit of or $ It turned over its inventory times during the year, and its DSO was days. The firm had fixed assets totaling $ Chastain's payables deferral period is days. Assume days in year for your calculations.
Calculate Chastain's cash conversion cycle. Do not round intermediate calculations. Round your answer to two decimal places.
days
Assuming Chastain holds negligible amounts of cash and marketable securities calculate its total assets turnover and ROA. Do not round intermediate calculations. Round your answers to two decimal places.
Total assets turnover:
ROA:
Suppose Chastain's managers believe that the inventory turnover can be raised to times. What would Chastain's cash conversion cycle, total assets turnover, and ROA have been if the inventory turnover had been for Do not round intermediate calculations. Round your answers to two decimal places.
Cash conversion cycle:
days
Total assets turnover:
ROA:
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