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 $$2,540,000($all on credit$),$

and its net profit margin was $7\%.$ Its inventory turnover was $7\mathrm{.}0$ times during the year, and its DSO was $41$ days. Its annual cost of goods sold was $$1,400,000.$ The

firm had fixed assets totaling $$400,000.$ Strickler's payables deferral period is $46$ days. Assume a $365-$day year. Do not round intermediate calculations.

a$.$ Calculate Strickler's cash conversion cycle. Do not round intermediate calculations. Round your answer to two decimal places.

days

b$.$ Assuming Strickler holds negligible amounts of cash and marketable securities$,$ calculate its total assets turnover and ROA. Do not round intermediate

calculations. Round your answers to two decimal places.

Total assets turnover:

ROA:

$\%$

c$.$ Suppose Strickler's managers believe the annual inventory turnover can be raised to $10$ 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 $10$ for the year? Do not round intermediate calculations. Round

your answers to two decimal places.

Cash conversion cycle:

days

Total assets turnover:

$$

ROA:

$\%$