Reference no: EM13976311
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 $200,000 (all on credit), and it earned a net profit of 4%. Its inventory turnover was 4.87796 times during the year, and its DSO was 37 days. Its annual cost of goods sold was $121,949. The firm had fixed assets totaling $30,000. Strickler's payables deferral period is 39 days. Assume 365 days in year for your calculations. Do not round intermediate calculations.
a) Calculate Strickler's cash conversion cycle. Round your answer to two decimal places.
_______days
b) Assuming Strickler holds negligible amounts of cash and marketable securities, calculate its total assets turnover. Round your answer to two decimal places.
_________x
Calculate its ROA. Round your answer to two decimal places.
__________%
c) Suppose Strickler's managers believe that the inventory turnover can be raised to 7 times without affecting sales and cost of goods sold. What would Strickler's cash conversion cycle have been if the inventory turnover had been 7 for the year? Round your answer to two decimal places.
__________days
What would Strickler's total assets turnover have been if the inventory turnover had been 7 for the year? Round your answer to two decimal places.
__________x
What would Strickler's ROA have been if the inventory turnover had been 7 for the year? Round your answer to two decimal places.
___________%
|
Evidence collection-what are major categories of evidence
: You have been assigned to the Emerel Company embezzlement case by the owner of your CPA firm. The president of Emerel Company has told you that Susan Smith, the assistant bookkeeper, reported the suspected fraud. What are the three major categories o..
|
|
Pay the accumulated interest at end of each interest period
: Upon graduation, Steven purchases a new home theatre system for his apartment.To finance the system, he borrows $5,000 from a new credit card at 21% per year compounded monthly. He fully intends to pay off the loan in 1 year while making monthly paym..
|
|
What is the cash flow to stockholders-operating cash flow
: Volbeat Corp. shows the following information on its 2015 income statement: sales=$267,000; costs=$148,000; other expenses= $8,200; depreciation expense= $17,600; interest expense= $12,400; taxes = $32,620; What is the 2015 operating cash flow? What ..
|
|
Calculate the degree of operating leverage
: PrepCo, Inc. is looking to find information on its breakeven point and associated measurements. The following is the data that PrepCo will use in its analysis: Variable operating costs of $15 per unit. Calculate the units needs for PrepCo’s operating..
|
|
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 $200,000 (all on credit), and it earned a net profit of 4%. Calculate Strickler's cash conversion cycle. Calc..
|
|
A firm has had the indicated earnings per share
: A firm has had the indicated earnings per share over the last three years. If the firm's dividend policy was based on a constant payout ratio of 50 percent, determine the annual dividend for each year.
|
|
Calculate coefficient of variation for each of alternatives
: You have been given the expected return data shown in the first table on 3 assets- F, G and H over the period 2016-2019. Calculate the expected return over the 4 year period for each of the alternatives. Calculate the standard deviation of returns ov..
|
|
About project cash flow estimation
: Which of the following statements about project cash flow estimation is false?
|
|
What is the amount of the equal annual installments
: Calculate the amount today that is equivalent to $150 at the end of year 1, $450 at the end of year 2, and $300 at the end of year 3, given a discount rate of 10%. What is the amount of the equal annual installments for a 10-year, $10,000 loan with a..
|