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 $200,000 (all on credit), and it earned a net profit of 5%. Its inventory turnover was 8 times during the year, and its DSO was 32 days. Its annual cost of goods sold was $121,492. The firm had fixed assets totaling $40,000. Strickler's payables deferral period is 32 days. Assume 365 days in year for your calculations. 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. Round your answer to two decimal places.
x
Calculate its ROA. Round your answer to two decimal places.
%