Question: Strickler Technology is considering changes in its working capital policies to improve its cash flow cycle. Strickler's sales last year were $ 5 , 3
Strickler Technology is considering changes in its working capital policies to improve its cash flow cycle. Strickler's sales last year were $all on credit and its net profit margin was Its inventory turnover was times during the year, and its DSO was days. Its annual cost of goods sold was $ The firm had fixed assets totaling $ Strickler's payables deferral period is days. Assume a day year. 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 and ROA. Round your answers to two decimal places.
Total assets turnover:
times
ROA:
Suppose Strickler's managers believe the annual inventory turnover can be raised to times without affecting sale or profit margins. What would Strickler's cash conversion cycle, total assets turnover, and ROA have been if the inventory turnover had been for the year? Round your answers to two decimal places.
Cash conversion cycle:
days
Total assets turnover:
times
ROA:
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