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Suchewin's Corporation wants to determine the effect of its inventory and receivables management on its cash flow cycle. Suchewin's sales last year (all on credit)
Suchewin's Corporation wants to determine the effect of its inventory and receivables management on its cash flow cycle. Suchewin's sales last year (all on credit) was $365,000, and earned a net profit % of 10%. Inventory Turnover was 24, Days Sales Outstanding was 45, and Days Payable Outstanding were 30. Cost of Goods Sold was $120,000, and Fixed Assets were $50,000. Please calculate Suchewin's cash conversion cycle (preferably using my methodology, not the text's) Assume Suchewin has no cash, no marketable securities and no other Long Term Assets. What is Suchewin's Total Asset Turnover and ROA? If Suchewin improves Inventory Turnover to 15, what is the new cash conversion cycle, Total Asset Turnover and ROA
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