Question: Strickler Technology is considering changes in its working capital policies to improve its cash flow cycle. Strickler's sales last year $4,275,000 (all on credit), and

Strickler Technology is considering changes in its working capital policies to improve its cash flow cycle. Strickler's sales last year $4,275,000 (all on credit), and its net profit margin was 4%. Its inventory turnover was 7.5 times during the year, and its DSO was 40 days. Its annual cost of goods sold was $2,250,000. The firm had fixed assets totaling $680,000. Strickler's payables deferral period is 45 days. Assume a 365day year 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: % calculations. Round your answers to two decimal places. Cash conversion cycle: days Total assets turnover: ROA: %
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