Mako Industries is considering changes in its working capital policies to improve ts cash flow cycle. Mako's sales last year were $6.0 million (all on credit), and its het 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 times without affecting sale or profit margins. What would Mako's ROA have been if the inventory turnover had been 8 for the year?
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- 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%Merton Analytics is considering changes in its working capital policies to improve its cash flow cycle. Merton’s sales last year were $4,250,000 (all on credit), and its net profit margin was 7%. Its inventory turnover was 7.5 times during the year, and its DSO was 41 days. Its annual cost of goods sold was $2,200,000. The firm had fixed assets totaling $585,000. Merton’s payables deferral period is 42 days. Calculate Merton’s cash conversion cycle. Assuming Merton holds negligible amounts of cash and marketable securities, calculate its total assets turnover and ROA. Suppose Merton’s managers believe the annual inventory turnover can be raised to 9.5 times without affecting sales. What would Merton’s cash conversion cycle, total assets turnover, and ROA have been if the inventory turnover had been 9.5 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. 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. (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?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?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?
- 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?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…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 manager who 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 management is keenly watching: cash conversion cycle, total assets turnover and ROA as your KPI.…
- Berry Manufacturing turns over its inventory 8 times each year, has an Average Payment Period of 35 days and has an Average Collection Period of 60 days. The firm’s annual sales are $3.5 million. Assume there is no difference in the investment per dollar of sales in inventory, receivable, and payables and that there is a 365-day year. A. How much resources must be invested to support its Cash Conversion Cycle? B. If the firm pays 14% for these resources, by how much would it increase its annual profits by favorably changing its Current Cash Conversion Cycle by 20 days.Magnum, Inc., projects next year's sales to be $20 million. Current sales are at $15 million, based on current assets of $7 million and fixed assets of $8 million. The firm's net profit margin is 5 percent after taxes. Magnum forecasts that current assets will rise in direct proportion to the increase in sales but that fixed assets will increase by only $150,000. Currently, Magnum has $1.5 million in accounts payable (which vary directly with sales), $7 million in long-term debt (due in 10 years), and common equity (including $4 million in retained earnings) totaling $6.5 million. Magnum plans to pay $500,000 in common stock dividends next year. What are Magnum's total financing needs (that is, total assets) for the coming year?You have recently been hired to improve the performance of Maitland Corporation, which has no idea how the company is performing with cash. In one part of your analysis, you want to determine the firm’s Net working capital. Using the following information as a 360-day year. Current Inventory = $105,000. Annual Sales = $450,000. The cost of goods sold is 70% of sales Accounts receivable = $95,000. Accounts payable = $15,000. Total annual purchases =$220,000. Purchases credit terms: net 30 days. Receivables credit terms: net 50 days. What is Maitland Corporation Net Working Capital?