Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please attempt the question if you can solve all the questions, please do not attempt if you are going to solve only 1 part. i

Please attempt the question if you can solve all the questions, please do not attempt if you are going to solve only 1 part. i WILL DOWNVOTE AND REPORT IF 1 ANSWERED.

image text in transcribed

image text in transcribed

Strickler Technology is considering changes in its working capital policies to improve its cash flow cycle. Strickler's sales last year were $3,530,000 (all on credit), and its net profit margin was 7%. Its inventory turnover was 6.5 times during the year, and its DSO was 38 days. Its annual cost of goods sold was $1,950,000. The firm had fixed assets totaling $565,000. Strickler's payables deferral period is 41 days. Assume a 365 day year. Do not round intermediate calculations. Calculate Strickler's cash conversion cycle. Do not round intermediate calculations. Round your answer to two decimal places. Assuming Strickler 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. Suppose Strickler's managers believe the annual inventory turnover can be raised to 10 times without affecting sale or profit margins. What would Strickler's cash conversion cycle, total assets turnover, and ROA have been if the inventory turnover had been 10 for the year? Do not round intermediate calculations. Round your answers to two decimal places. Kiko Peleh writes a put option on Japanese yen with a strike price of $0.008000/ (125.00/$) at a premium of 0.0080$ per yen and with an expiration date six month from now. The option is for X12,500,000. What is Kiko's profit or loss at maturity if the ending spot rates are 111/$,116/$,121/$,X125/$,131/$,136/$, and \140/$. Kiko's profit or loss at maturity if the ending spot rate is 111/$ is $. Kiko's profit or loss at maturity if the ending spot rate is \116/$ is $. Kiko's profit or loss at maturity if the ending spot rate is 121/$ is $. Kiko's profit or loss at maturity if the ending spot rate is 125/$ is $. Kiko's profit or loss at maturity if the ending spot rate is \131/$ is $. Kiko's profit or loss at maturity if the ending spot rate is \136/$ is $. Kiko's profit or loss at maturity if the ending spot rate is 140/$ is $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Finance For Managers

Authors: Harvard Business School Press

1st Edition

1578518768, 978-1578518760

More Books

Students also viewed these Finance questions