Strickler Technology is considering changes in its working capital policies to improve its cash flow...
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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 $3,167,500 (all on credit), and its net profit margin was 5%. Its inventory turnover was 7.5 times during the year, and its DSO was 41 days. Its annual cost of goods sold was $1,875,000. The firm had fixed assets totaling $542,500. Strickler's payables deferral period is 44 days. Assume a 365-day year.
A. ) Do not round intermediate calculations. Calculate Strickler's cash conversion cycle. Round your answer to two decimal places
B.) Assuming Strickler holds negligible amounts of cash and marketable securities, calculate its total assets turnover and ROA. Round your answers to two decimal places.
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