Calculate afcs total assets turnover and return on assets

Assignment Help Financial Econometrics

Reference no: EM13333163

The American Flag Corporation (AFC) wants to determine the effect of its inventory turnover and days sales outstanding (DSO) on it's cash flow cycle. Last year, AFC's sales (all on credit) were $468,000, and it had a net profit margin of 8 percent. The cost of goods is 60 percent of sales. Inventory was tured over 12 times during the year, and the DSO was 42 days. The firm had negligible amounts of cash and marketable securities and its fixed assets were $150,000. AFC's payables deferral period is 35 days.

a. calculate AFC's cash conversion cycle

b. Calculate AFC's total assets turnover and return on assets (ROA)

Reference no: EM13333163

Questions Cloud

Explain water over the temperature range : Assume that the coffee has the same density, 0.997g/mL , and specific heat capacity, 4.184\rm J/(g\cdot K) , as water over this temperature range.

What transfer price would you recommend : What transfer price would you recommend and why and what transfer price would you recommend if the Battery Division is now selling 1,000,000 batteries a year to retail outlets?

Does the resulting relation have an mvd : Does the above have one or more functional dependency (do not list FDs by applying derivation rules)? If so, what is it? Show how you will remove it by decomposition.

How far will it travel before coming to a stop : Assuming a coefficient of friction of 0.45 between the disk and the surface it slides on, how far will it travel (after leaving the spring) before coming to a stop

Calculate afcs total assets turnover and return on assets : Last year, AFC's sales (all on credit) were $468,000, and it had a net profit margin of 8 percent. The cost of goods is 60 percent of sales. Inventory was tured over 12 times during the year, and the DSO was 42 days.

Allocate the service department costs : Allocate the service department costs to the user departments using the step method.

Evaluate the percent by mass of potassium nitrate : Calculate the percent by mass (m/m) of potassium nitrate in a solution made from 45.0 g KNO3 and 295 mL water

What is the speed of each cart after the collision : A 2.0 kg cart has a spring with k = 5000 N/m attached to its front, parallel to the ground. What is the speed of each cart after the collision

Find what is the length of the firms cash conversion cycle : The saliford corporation has an inventory conversion period of 60 days, a receivables collection period of 36 days, and a payables deferral period of 24 days. a. what is the length of the firms cash conversion cycle

User Account

All Pages