In: Finance
Strickler Technology is considering changes in its working capital policies to improve its cash flow cycle. Strickler's sales last year were $2,860,000 (all on credit), and its net profit margin was 8%. Its inventory turnover was 5.0 times during the year, and its DSO was 32 days. Its annual cost of goods sold was $1,500,000. The firm had fixed assets totaling $455,000. Strickler's payables deferral period is 35 days. Assume a 365-day year. Do not round intermediate calculations.
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Note: Numbers are rounded to nearest number above or below 5 on the basis of 3rd number after decimal.