Question
subject: financial management Strickler Technology is considering changes in its working capital policies to improve its cash flow cycle. Strickler's sales last year were Rs
subject: financial management
Strickler Technology is considering changes in its working capital policies to improve its cash flow cycle. Strickler's sales last year were Rs 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 Rs1,800,000. The firm had fixed assets totalling Rs 535,000. Strickler's payables deferral period is 45 days.
i. Calculate Strickler's cash conversion cycle.
ii.Assuming Strickler holds negligible amounts of cash and marketable securities, calculate its total assets turnover and ROA.
iii.Suppose Strickler's managers believe the annual inventory turnover can be raised to 9 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 9 for the year?
Please donot copy from chegg or any other website I needed unique work and please could you explain in detail (ASAP)
Please show all the calculations, and formula used.
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