Question
Please use Excel: Dubner Dentures is considering changes in its working capital policies to improve its cash ow cycle. Dubners sales last year were $5,500,000
Please use Excel:
Dubner Dentures is considering changes in its working capital policies to improve its cash ow cycle. Dubners sales last year were $5,500,000 (all on credit), and its net prot margin was 6.5%. Its inventory turnover was 4.5 times during the year, and its DSO was 33 days. Its annual cost of goods sold was $3,200,000. The rm had xed assets totaling $675,000. Dubners payables deferral period is 45 days.
- Suppose Dubners managers believe the annual inventory turnover can be raised to 6 times without affecting sales. What would Dubners cash conversion cycle, total assets turnover, and ROA have been if the inventory turnover had been 6 for the year?
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