Question: Please answer in Excel! Dubner Dentures is considering changes in its working capital policies to improve its cash ow cycle. Dubners sales last year were

Please answer in Excel!

Dubner Dentures is considering changes in its working capital policies to improve its cash ow cycle. Dubners sales last year were $5,500,000 (all on credit), and its net prot margin was 6.5%. Its inventory turnover was 4.5 times during the year, and its DSO was 33 days. Its annual cost of goods sold was $3,200,000. The rm had xed assets totaling $675,000. Dubners payables deferral period is 45 days.

a. Calculate Dubners cash conversion cycle.

b. Assuming Dubner holds negligible amounts of cash and marketable securities, calculate its total assets turnover and ROA.

c. Suppose Dubners managers believe the annual inventory turnover can be raised to 6 times without affecting sales. What would Dubners cash conversion cycle, total assets turnover, and ROA have been if the inventory turnover had been 6 for the year?

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