Question
Please answer the below questions with the exact numbers listed: Working Capital Cash Flow Cycle Strickler Technology is considering changes in its working capital policies
Please answer the below questions with the exact numbers listed:
Working Capital Cash Flow Cycle
Strickler Technology is considering changes in its working capital policies to improve its cash flow cycle. Strickler's sales last year were $140,000 (all on credit), and it earned a net profit of 5%. Its inventory turnover was 5.6 times during the year, and its DSO was 30.5 days. Its annual cost of goods sold was $121,053. The firm had fixed assets totaling $50,000. Strickler's payables deferral period is 43 days. Assume 365 days in year for your calculations. Do not round intermediate calculations.
- A.Calculate Strickler's cash conversion cycle. Round your answer to two decimal places. ______days
- B.AssumingStricklerholdsnegligibleamountsofcashandmarketablesecurities,calculateitstotalassetsturnover.Roundyouranswertotwodecimalplaces._____x
- CalculateitsROA.Roundyouranswertotwodecimalplaces. _____%
- C.SupposeStrickler'smanagersbelievethattheinventoryturnovercanberaisedto9timeswithoutaffectingsalesandcostofgoodssold.WhatwouldStrickler'scashconversioncyclehavebeeniftheinventoryturnoverhadbeen9fortheyear?Roundyouranswertotwodecimalplaces._____days
- WhatwouldStrickler'stotalassetsturnoverhavebeeniftheinventoryturnoverhadbeen9fortheyear?Roundyouranswertotwodecimalplaces._____x
- WhatwouldStrickler'sROAhavebeeniftheinventoryturnoverhadbeen9fortheyear?Roundyouranswertotwodecimalplaces. _____%
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