Strickler Technology is considering changes in its workingcapital policies to improve its cash flow cycle. Strickler's saleslast year were $2,180,000 (all on credit), and its net profitmargin was 7%. Its inventory turnover was 6.0 times during theyear, and its DSO was 37 days. Its annual cost of goods sold was$1,200,000. The firm had fixed assets totaling $355,000.Strickler's payables deferral period is 43 days. Assume a 365-dayyear. Do not round intermediate calculations.
Calculate Strickler's cash conversion cycle. Do not roundintermediate calculations. Round your answer to two decimalplaces.
days
Assuming Strickler holds negligible amounts of cash andmarketable securities, calculate its total assets turnover and ROA.Do not round intermediate calculations. Round your answers to twodecimal places.
Total assets turnover: ×
ROA: %
Suppose Strickler's managers believe the annual inventoryturnover can be raised to 10 times without affecting sale or profitmargins. What would Strickler's cash conversion cycle, total assetsturnover, and ROA have been if the inventory turnover had been 10for the year? Do not round intermediate calculations. Round youranswers to two decimal places.
Cash conversion cycle: days
Total assets turnover: ×
ROA: %
