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 $140,000 (all on credit), and it earned a net profit of 8%. Its inventory turnover was 5.6 times during the year, and its DSO was 37 days. Its annual cost of goods sold was $121,688. The firm had fixed assets totaling $52,000. Strickler's payables deferral period is 34 days. Assume 365 days in year for your calculations. Do not round intermediate calculations.

1. a. CalculateStrickler'scashconversioncycle.Roundyouranswertotwodecimalplaces.
2. ___________days
3. b.AssumingStricklerholdsnegligibleamountsofcashandmarketablesecurities,calculateitstotalassetsturnover.Roundyouranswertotwodecimalplaces.
4. __________x
5. CalculateitsROA.Roundyouranswertotwodecimalplaces.
6. __________%
7. c.SupposeStrickler'smanagersbelievethattheinventoryturnovercanberaisedto9timeswithoutaffectingsalesandcostofgoodssold.WhatwouldStrickler'scashconversioncyclehavebeeniftheinventoryturnoverhadbeen9fortheyear?Roundyouranswertotwodecimalplaces.
8. ___________days
9. WhatwouldStrickler'stotalassetsturnoverhavebeeniftheinventoryturnoverhadbeen9fortheyear?Roundyouranswertotwodecimalplaces.
10. ___________x
11. WhatwouldStrickler'sROAhavebeeniftheinventoryturnoverhadbeen9fortheyear?Roundyouranswertotwodecimalplaces.
12. ___________%