Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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 5%. Its inventory turnover was 8 times during the year, and its DSO was 32 days. Its annual cost of goods sold was $121,492. The firm had fixed assets totaling $40,000. Strickler's payables deferral period is 32 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. %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Economics Of Money Banking And Financial Markets

Authors: Frederic S. Mishkin

12th Global Edition

1292268859, 978-1292268859

More Books

Students also viewed these Finance questions

Question

Employ effective vocal cues Employ effective visual cues

Answered: 1 week ago