Calculate stricklers cash conversion cycle

Assignment Help Financial Management
Reference no: EM131511116

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.

Calculate Strickler's cash conversion cycle. Round your answer to two decimal places.

Reference no: EM131511116

Questions Cloud

Calculate strickler cash conversion cycle : Strickler Technology is considering changes in its working capital policies to improve its cash flow cycle.
What is the year zero net cash flow : The Campbell Company is considering adding a robotic paint sprayer to its production line. What is the Year-0 net cash flow?
Working capital policies to improve its cash flow cycle : Strickler Technology is considering changes in its working capital policies to improve its cash flow cycle.
What rate would you have to invest lump-sum amount today : At approximately what rate would you have to invest a lump-sum amount today if you need the mount to double in six years?
Calculate stricklers cash conversion cycle : Strickler Technology is considering changes in its working capital policies to improve its cash flow cycle. Calculate Strickler's cash conversion cycle.
Adding a robotic paint sprayer to its production line : The Campbell Company is considering adding a robotic paint sprayer to its production line.
How is using effective yield equation useful in explaining : How is using the effective yield equation useful in explaining the bps spread you observe in 1.
Electric-powered forklift truck for moving materials : Davis Industries must choose between a gas-powered and an electric-powered forklift truck for moving materials in its factory.
Some investors prefer dividends while prefer capital gains : The idea that some investors prefer dividends while others prefer capital gains is related to ______.

Reviews

Write a Review

Financial Management Questions & Answers

  Assume the year five cash flow is perpetuity

Assume that the forecasted cash flows are overstated and should be 8% lower than those provided by the project analyst. But a lazy financial manager, unwilling to take the time to argue with the projects’ sponsors, instructs them to use a discount ra..

  Parties had made during their prior negotiations

Jones and Clark entered into a written contract for the purchase of an apartment building by Clark. The contract was carefully drafted to set forth the agreement of the parties. It was signed by both parties. Clark subsequently claimed that the contr..

  Compute the effect of this estimated change in inflation

Compute the effect of this estimated change in inflation on the price of a 15-year, 10 percent coupon bond with a current yield to maturity of 8 percent.

  Find the cross rate between GBP and JPY

On 11/8/11, the USD-JPY exchange rate was ¥77.746 per $1. Also on the same day, the USD-GPB exchange rate was $1.6086 per £1. Find the cross rate between GBP and JPY.

  What is the external financing needed

Assets and costs are proportional to sales. Debt and equity are not. A dividend of $2,500 was paid, and Martin wishes to maintain a constant payout ratio. Next year’s sales are projected to be $42,300. What is the external financing needed?

  Considering purchasing bonds issued

You are considering purchasing bonds issued by the Farrier Forges. The issue matures in 6 years, has a 2 5/8% coupon. You want to earn at least 3.80% and the most you would be willing to pay for $25,000 face value would be closest to

  What is the pv of the tax savings from financing the project

If other equivalent firms are offering investors expected rates of return of 10%, what is the PV of the tax savings from financing the project with a mortgage?

  Difficulties in developing and applying performance measures

What might be difficulties in developing and applying performance measures for activities are outside the control of any one individual?

  Compute the annual allowable depreciation

Using the SL method, compute the annual allowable depreciation for a machine that costs $47,000 to purchase and $3,000 to install with a 9-year life and a $5,000 salvage value.

  The amount of the lump sum payment will be

Upon graduation you take out a 30 year mortgage loan at 6.53% APR to buy a $750,000 house. You put down 20% of the loan amount, and expect to make monthly payments. You pay back the loan after 20 years by making one single lump sum payment. The amoun..

  What is the equivalent annual annuity

Project A requires an initial investment of $7,500 at t = 0. Project A has an expected life of 4 years with cash inflows of $5,000, $4,500, $900, $2,000 at the end of Years 1, 2, 3, and 4 respectively. The project has a required return of 15%. What i..

  How can social issues destroy value

How can social issues create value? How can social issues destroy value?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd