Working Capital Cash Flow CycleStrickler technology is considering changes in its working capital policies to improve its cash flow cycle. Strickler’s sales last year were $3 250 000 (all on credit) and its net profit margin was 7%. Its inventory turnover was 9.0 times during the year and its DSO was 41 days. Its annual cost of goods sold was $1 895 000. The firm has fixed assets totaling $535 000. Strickler’s payables deferral period is 45 days.a) Calculate Strickler’s cash conversion cycle.b) Assuming Strickler holds negligible amounts of cash and marketable securities calculate its total assets turnover and ROA. c) Suppose Strickler’s managers believe the annual inventory turnover can be raised to 12 times without affecting sales. What would Strickler’s cash conversion cycle total assets turnover and ROA have been if the inventory turnover had been 12 for the year?
Working Capital Cash Flow Cycle – Strickler technology is considering changes
by | Sep 6, 2025 | Statistics
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