7)	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 $2,485,000 (all on credit), and its net profit margin was 4%. Its inventory turnover was 5.5 times during the year, and its DSO was 35 days. Its annual cost of goods sold was $1,375,000. The firm had fixed assets totaling $402,500. Strickler's payables deferral period is 41 days. Assume 365 days in year for your calculations. Do not round intermediate calculations.
	a)	Calculate Strickler's cash conversion cycle.
			=
		Inventory Turnover = COGS / Inventory
		Inventory = COGS / Inventory Turnover
		ICP = Inventory / COGS per day
		CCC =
	b)	Assuming Strickler holds negligible amounts of cash and marketable securities, calculate its total assets turnover and ROA.
		Total Assets = Inventory + Receivables + Fixed Assets
		Total Assets Turnover = Sales / Total Assets
		ROA = Profit margin x Total assets turnover
	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 have been if the inventory turnover had been 10 for the year?
			=
		Inventory Turnover = COGS / Inventory
		Inventory = COGS / Inventory Turnover
		ICP = Inventory / COGS per day
		CCC =
		Total Assets = Inventory + Receivables + Fixed Assets
		Total Assets Turnover = Sales / Total Assets
		ROA = Profit margin x Total assets turnover