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Strickler Technology is considering changes in its working capital policies to improve its cash flow cycle. Strickler's sales last year were $110,000 (all on credit), and it earned a net profit of 6%. Its inventory turnover was 7.58025 times during the year, and its DSO was 32 days. Its annual cost of goods sold was $121,284. The firm had fixed assets totaling $25,000. Strickler's payables deferral period is 40 days. Assume 365 days in year for your calculations. Do not round intermediate calculations.

Suppose Strickler's managers believe that the inventory turnover can be raised to 8 times without affecting sales and cost of goods sold. What would Strickler's cash conversion cycle have been if the inventory turnover had been 8 for the year? Round your answer to two decimal places.

__________ days

What would Strickler's total assets turnover have been if the inventory turnover had been 8 for the year? Round your answer to two decimal places.

__________ x

What would Strickler's ROA have been if the inventory turnover had been 8 for the year? Round your answer to two decimal places.

__________ %

Financial Management, Finance

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