Aaish-o-Ishrat Technology is considering changes in the working capital policies to improve its cash flow cycle. The company's sales last year were Rs 3,250,000 (all on credit) and its net profit margin was 7%. Its inventory turnover was 6.0 X during the year, and its DSO was 41 days. The annual cost of goods sold was Rs 1,800,000. The company has fixed assets totaling Rs 535,000. The company's payables deferral period is 45 days. Required: (a) Calculate the company's cash conversion cycle. (b) Assuming the company hold a negligible amount of cash and marketable securities , calculate its total asset turnover, and ROA. (c) Suppose the company's managers believe the annual inventory turnover can be raised to 9 times without affecting sales, what will be the company's cash conversion cycle, total assets turnover, and ROA have been if inventory turnover had been 9 times for the year?
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- Strickler 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 6.0 times during the year, and its DSO was 41 days. Its annual cost of goods sold was $1,800,000. The firm had 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 9 times without affecting sales. What would Strickler’s cash conversion cycle, total assets turnover, and ROA have been if the inventory turnover had been 9 for the year?Strickler 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 6.0 times during the year, and its DSO was 41 days. Its annual cost of goods sold was $1,800,000. The firm had fixed assets totaling $535,000. Strickler’s payables deferral period is 45 days. Calculate Strickler’s cash conversion cycle. Assuming Strickler holds negligible amounts of cash and marketable securities, calculate its total assets turnover and ROA. Suppose Strickler’s managers believe the annual inventory turnover can be raised to 9 times without affecting sale or profit margins. What would Strickler’s cash conversion cycle, total assets turnover, and ROA have been if the inventory turnover had been 9 for the year?Strickler 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 6.0 times during the year, and its DSO was 41 days. Its annual cost of goods sold was $1,800,000. The firm had fixed assets totaling $535,000. Strickler's payables deferral period is 45 days. (16-12) Working Capital Cash Flow Cycle 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 9 times without affecting sale or profit margins. What would Strickler's cash conversion cycle, total assets turnover, and ROA have been if the inventory turnove had been 9 for the year?
- Mako Industries is considering changes in its working capital policies to improve its cash flow cycle. Mako's sales last year were $6.0 million (all on credit), and its net profit margin was 8%. Its inventory turnover was 7.0 times during the year, and its DSO was 45 days. Its annual cost of goods sold was $4.20 million. The firm had fixed assets totaling $600,000. Mako's payables deferral period is 30 days. Suppose Mako's managers believe the annual inventory turnover can be raised to 8 times without affecting sale or profit margins. What would Mako's ROA have been if the inventory turnover had been 8 for the year? O 25.74% O 21.03% O 24.33% O 26.57%Strickler Technology is considering changes in its working capital policiesto 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 was6.0 times during the year, and its DSO was 41 days. Its annual cost of goodssold was $1,800,000. The firm had fixed assets totaling $535,000. Strickler’spayables deferral period is 45 days.a. Calculate Strickler’s cash conversion cycle.b. Assuming Strickler holds negligible amounts of cash and marketablesecurities, calculate its total assets turnover and ROA.c. Suppose Strickler’s managers believe the annual inventory turnover canbe raised to 9 times without affecting sale or profit margins. What wouldStrickler’s cash conversion cycle, total assets turnover, and ROA havebeen if the inventory turnover had been 9 for the year?Mako Industries is considering changes in its working capital policies to improve its cash flow cycle. Mako's sales last year were $6.0 million (all on credit), and its net profit margin was 8%, Its inventory turnover was 7.0 times during the year, and its DSO was 45 days. Its annual cost of goods sold was $4.20 million. The firm had fixed assets totaling $600,000. Mako's payables deferral period is 30 days. Suppose Mako's managers believe the annual inventory turnover can be raised to 9 tímes without affecting sale or profit margins. What would Mako's ROA have been if the inventory turnover had been 8 for the year? 25.13% O 26.57% O 24.33% O 21.03%
- Strickler Technology is considering changes in its working capital policies to improve its cash flow cycle. Stricklers sales last year were 3,250,000 (all on credit), and its net profit margin was 7%. Its inventory turnover was 6.0 times during the year, and its DSO was 41 days. Its annual cost of goods sold was 1,800,000. The firm had fixed assets totaling 535,000. Stricklers payables deferral period is 45 days. a. Calculate Stricklers cash conversion cycle. b. Assuming Strickler holds negligible amounts of cash and marketable securities, calculate its total assets turnover and ROA. c. Suppose Stricklers managers believe the annual inventory turnover can be raised to 9 times without affecting sale or profit margins. What would Stricklers cash conversion cycle, total assets turnover, and ROA have been if the inventory turnover had been 9 for the year?1.2. What Is the internlal growth ate (IGR)? interpret. 2) The net income is RO 25,000. Last year's sales were RO 180,000. The total assets represent half (50%) of total sales. The accounts payables represent 10% of total assets. The accruals is RO 2,000 and the notes payables is RO 3,000. The assets and costs vary directly with sales. The firm distributes RO 15,000 dividends. The firm operates at full capacity. If the sales growth rate is 15%, how much external financing is needed? Interpret.Inova Co. has recorded annual sales of RM25,000,000 in year 2018 with 30% of the sales revenues is on credit. The costs of gold sold of the company is equal to 70% of sales revenues in year 2018. In addition, the company has accounts payable of RM3,500,000, and the company turn overs its inventories 10 times a year. The company is operating under a 360-day business year. (i) Compute the cash conversion cycle (CCC) of Inova Co. (ii) Inova Co. is now keen to speed up its inventory turnover and shorten the average collection period. As a result, the inventory turnover increases to 12 times and the accounts receivable are 25% lower than its previous level. Compute the new CCC of Inova Co. after these changes.
- Mareez Pharma is trying to determine the effect of its inventory and receivable turnover ratios on its cash flow cycle. Mareez Pharma sales last year (all on credit) were $ 5,000,000, and its net profit was 10%. Its inventory turnover was 6.0 times during the year, and its average collection period was 40 days. Its annual cost of goods sold was $3,800,000. The firm had fixed assets totaling $1,500,000. Mareez Pharma payables deferral period is 50 days. Required: Calculate Mareez Pharma cash conversion cycle. Assuming Mareez Pharma holds negligible amounts of cash and marketable securities, calculate its total assets turnover and ROA. Suppose you have been recently hired by Mareez Pharma as CFO. Your finance managerwho was expecting to be promoted as CFO has recommended you that it is possible to change annual inventory turnover to 9.5 times without affecting the sales. You know that а. b. C. management is keenly watching: cash conversion cycle, total assets turnover and ROA as your…The net income is RO 20 million. Last year's sales were RO 180 million. The total assets represent two-thirds of the total sales. The accounts payables represent 20% of total assets. The accruals are RO 1 million and the notes payable is RO 2 million. The assets and costs vary directly with sales. The retained earnings are RO 8 million. The firm operates at full capacity. If the sales growth rate is 10%, how much external financing is needed (EFN)? Interpret. Please use THIS formula (in the picture):A company is considering a $168,000 investment in machinery with the following net cash flows. The company requires a 10% return on its investments. (PV of $1, FV of $1, PVA of $1. and FVA of $1) (Use appropriate factor(s) from the tables provided.) Net Cash Flow (a) Compute the net present value of this investment. (b) Should the machinery be purchased? Year Year 11 Year 2 Year 1 $10,000 Complete this question by entering your answers in the tabs below. Year 3 Year 4 Year 5 Totals Initial investment Net present value Required A Required B Compute the net present value of this investment. (Round your present value factor to 4 decimals. Round your final answers to the nearest whole dollar.) Year 2 $29,000 Net Cash Flows $ 0 Present Value Factor Year 3 $55,000 Present Value of Net Cash Flows $ $ Required A Year, 4 $42,000 0 0 Year 5 $113,000 Required >