Its working capital policies to improve its cash flow cycle

Assignment Help Financial Management

Reference no: EM131183465

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 $190,000 (all on credit), and it earned a net profit of 6%. Its inventory turnover was 9.5 times during the year, and its DSO was 37.5 days. Its annual cost of goods sold was $121,122. The firm had fixed assets totaling $34,000. Strickler's payables deferral period is 45 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

Suppose Strickler's managers believe that the inventory turnover can be raised to 9 times without affecting sales and cost of goods sold. What would Strickler's cash conversion cycle have been if the inventory turnover had been 9 for the year? Round your answer to two decimal places.

Reference no: EM131183465

Questions Cloud

Plate cooler after batch pasteurization : Sweetened condensed milk is pumped through a plate cooler after batch pasteurization. The milk enters the cooler at 74°C and exits at 4°C, and is pumped at a rate of 200 kg/h. What quantity of heat needs to be removed by the cooling medium in 8 ho..

Three methods commonly used to estimate the cost of equity : Is the risk premium in the CAPM the same as the risk premium in the debt cost plus risk premium model?

What should he do or say when trying on loafers in the store : What should Andrew do or say when presenting Dave with his idea for Shoe Leonard's? What should he do or say when trying on loafers in the store?

Powdered aluminum according to the reaction : Can someone walk me through this problem step by step and tell me what formula(s) I need to use? Nitrogen reacts with powdered aluminum according to the reaction:

Its 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. Strickler's sales last year were $190,000 (all on credit), and it earned a net profit of 6%. Its inventory turnover was 9.5 times during the y..

Where can i get potassium cyanide : Where can I get potassium cyanide? Is it available in the stores? If not, can it be prepared at home in the kitchen?

Describe distinct theories to human resource approaches : Five approaches to organizational design. Describe the five distinct theories and/or approaches and key elements to: 1), Classical, bureaucratic theories. 2), human resource approaches. 3), Contingency theories.4), Open systems theory. 5), empowe..

Melting of a substance whose melting point : A. Why is it useful to know the melting point and/or boiling point of a substance? B. How would you determine the melting of a substance whose melting point is higher than 100°C?

User Account

All Pages