Question: o 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
o 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 $2,667,500 (all on credit), and its net profit margin was 4%. Its inventory turnover was 45 times during the year, and its D50 was 36 days. Its annual cost of goods sold was $1,575,000. The firm had foxed assets totaling $482.500. Strickler's payables deferral period is 39 days. Assume a 365 day year Do not found intermediate calculations a. Calculate Stricker's cash conversion cyde. Round your answer to two decimal places, days b. Assuming Stricker holds negligible amounts of cash and marketable securities, calculate its total assets turnover and ROA. Round your answers to two decimal places Total assets turnover: ROA c Support Strickler's managers believe the annual inventory turnover can be raised to 5 times without affecting sale or profit margins. What would Strickler's cash conversion cyde, total assets turnover, and ROA have been if the inwertory turnover had been for the year Round your answers to two decimal places Cash Conversion cyde: days Total assets turnover ROA 56
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