Problem 16-12 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 $200,000 (all on credit), and it earned a net profit of 7%. Its inventory turnover was 10 times during the year, and its DSO was 35 days. Its annual cost of goods sold was $121,030. The firm had fixed assets totaling $33,000. Strickler's payables deferral period is 44 days. Assume 365 days in year for your calculations. Do not round intermediate calculations.

Calculate Strickler's cash conversion cycle. Round your answer to two decimal places. ___________days?

Assuming Strickler holds negligible amounts of cash and marketable securities, calculate its total assets turnover. Round your answer to two decimal places. ___________x Calculate its ROA. Round your answer to two decimal places. __________ %

Suppose Strickler's managers believe that the inventory turnover can be raised to 7 times without affecting sales and cost of goods sold. What would Strickler's cash conversion cycle have been if the inventory turnover had been 7 for the year? Round your answer to two decimal places. __________ days What would Strickler's total assets turnover have been if the inventory turnover had been 7 for the year? Round your answer to two decimal places. ________ x What would Strickler's ROA have been if the inventory turnover had been 7 for the year? Round your answer to two decimal places. __________ %

Problem 17-8 Purchasing Power Parity

In the spot market, 11.0 pesos can be exchanged for 1 U.S. dollar. A pair of headphones costs $16 in the United States. If purchasing power parity holds, what should be the price of the same headphones in Mexico? Round your answer to two decimal places.

____________pesos

Problem 17-6 Cross Rates

Suppose the exchange rate between U.S. dollars and the Swiss franc is SFr1.1 = $1, and the exchange rate between the dollar and the British pound is 1 = $1.80. What then is the cross rate between francs and pounds? Round your answer to two decimal places.

____________ Swiss francs per pound