Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

Working Capital Cash Flow Cycle: Strickler Technology is considering changes in its working capital policies to improve its cash flow cycle. Strickler sales last year were $3,250,000 (all on credit), and its net profit margin was 7%. Its inventory turnover was 6.0 times during the year, and its DSO was 41 days. Its annual cost of goods sold was $1,800,000. The firm had fixed assets totaling $535,000. Stricklers payables deferral period is 45 days.

a. find out Stricklers cash conversion cycle.

b. Assuming Strickler holds negligible amounts of cash and marketable securities, find out its total assets turnover and ROA.

c. Suppose Stricklers managers believe the annual inventory turnover can be raised to 9 times without affecting sales. What would Stricklers cash conversion cycle, total assets turnover, and ROA have been if the inventory turnover had been 9 for the year?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M938328
  • Price:- $20

Guranteed 24 Hours Delivery, In Price:- $20

Have any Question? 


Related Questions in Basic Finance

If you suspect that a companys advertising expenditures in

If you suspect that a company's advertising expenditures in a given month affect its sales in future months, what correlations would you look at to confirm your suspicions? How would you find them?

Suppose you are interested in taking a safari to kenta

Suppose you are interested in taking a safari to Kenta, Africa, next summer but are worried about the price of the trip, which has ranged from $2,500 to $3,500 over the past five years. The current price is $3,000. Suppo ...

What does too big to fail mean what are the costs of such a

What does "too big to fail" mean? What are the costs of such a policy? Under what circumstances would your funds be safer in a large bank that made risky loans rather than in a small conservative local bank?

A country is the only production site in the world for

A country is the only production site in the world for hyperhoney infinite pasta, a wonderful product produced using a delicate, highly perishable extract obtainable from some trees that grow only in this country. Beyond ...

Systemic risk explain how systemic risk is related to the

Systemic Risk: Explain how systemic risk is related to the commercial paper market. That is, why did problems in the market for mortgage-backed securities affect the commercial paper market?

1you have decided to go long 15 coffee contacts trades in

1. You have decided to go long 15 coffee contacts trades in $ per pound; minimum movement = $.0005/pound; Contract size = 37,500 pounds). The initial margin for the contact is $5,313 and the maintenance margin is $4,250. ...

The past five monthly returns for pgampe are -347 percent

The past five monthly returns for PG&E are -3.47 percent, 4.63 percent, 4.07 percent, 6.92 percent, and 3.88 percent. What is the average monthly return? (Round your answer to 3 decimal places.)

At dolon general hospital 30 percent of the patients have

At Dolon General Hospital, 30 percent of the patients have Medicare insurance (M) while 70 percent do not have Medicare insurance (M´). Twenty percent of the Medicare patients arrive by ambulance, compared with 10 percen ...

Using the annual report and other sources such as a 10k or

Using the annual report and other sources such as a 10k or 10q's, discuss the dividend policy of McDonalds. Answer the following questions as part of your response: How would you describe your chosen company's dividend p ...

The number of claims n in a year has a discrete

The number of claims N in a year has a discrete distribution: Pr[N=k]=0.1(4-k) for k=0,1,2,3. The amount for each claim has mean 300 and variance 30000. The distribution of amount per claim is independent of N. Calculate ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate