Strickler Technology is considering changes in its working capital policies to improve its cash flow cycle. Stricklers sales last year were $3,250,000 (all on credit), and its net profit margin was 7%. Its inventory turnover was 6.0 times during the year, and its DSO was 41 days. Its annual cost of goods sold was $1,800,000. The firm had fixed assets totaling $535,000. Stricklers payables deferral period is 45 days.

A: Calculate Stricklers cash conversion cycle. Answer: 56.8 days B: Assuming Strickler holds negligible amounts of cash and marketable securities, calculate its total assets turnover and ROA. Answer: (1) 2.7082; (2)18.96% C: Suppose Stricklers managers believe the annual inventory turnover can be raised to 9 times without affecting sales.What would Stricklers cash conversion cycle, total assets turnover, and ROA have been if the inventory turnover had been 9 for the year? Answer: (1) 36.6 days; (2) 2.95; (3) 20.68%