You don't need excel sheet to answer questions a. Calculate Chastain's cash conversion cycle. Round your answer to two decimal places. Do not round intermediate calculations.55.83 daysb. Assuming Chastain holds negligible amounts of cash and marketable securities, calculate its total assets turnover and ROA. Roundyour answers to two decimal places. Do not round intermediate calculations.Total assets turnoverROA2.7916.71Cash conversion cycleTotal assets turnoverROAc. Suppose Chastain's managers believe that the inventory turnover can be raised to 8.9 times. What would Chastain's cash conversioncycle, total assets turnover, and ROA have been if the inventory turnover had been 8.9 for 2016? Round your answers to two decimalplaces. Do not round intermediate calculations.36.013.17%19.01days% Chastain Corporation is trying to determine the effect of its inventory turnover ratio and days sales outstanding (DSO) on its cash conversioncycle. Chastain's 2016 sales (all on credit) were $285000; its cost of goods sold is 80% of sales; and it earned a net profit of 6%, or$17100. It turned over its inventory 6 times during the year, and its DSO was 35 days. The firm had fixed assets totaling $37000. Chastain'spayables deferral period is 40 days. Assume 365 days in year for your calculations. The data has been collected in the Microsoft Excel Onlinefile below. Open the spreadsheet and perform the required analysis to answer the questions below.CUTTIOpen spreadsheeta. Calculate Chastain's cash conversion cycle. Round your answer to two decimal places. Do not round intermediate calculations.55.83daysb. Assuming Chastain holds negligible amounts of cash and marketable securities, calculate its total assets turnover and ROA. Roundyour answers to two decimal places. Do not round intermediate calculations.Total assets turnoverROA2.7916.71%c. Suppose Chastain's managers believe that the inventory turnover can be raised to 8.9 times. What would Chastain's cash conversioncycle, total assets turnover, and ROA have been if the inventory turnover had been 8.9 for 2016? Round your answers to two decimal

The Cash Conversion Cycle (CCC) assesses how long it takes for a company to convert its investments…

a. Calculate Chastain's cash conversion cycle. Round your answer to two decimal places. Do not round intermediate calculations. 55.83 days b. Assuming Chastain holds negligible amounts of cash and marketable securities, calculate its total assets turnover and ROA. Round your answers to two decimal places. Do not round intermediate calculations. Total assets turnover ROA 2.79 16.71 % c. Suppose Chastain's managers believe that the inventory turnover can be raised to 8.9 times. What would Chastain's cash conversion cycle, total assets turnover, and ROA have been if the inventory turnover had been 8.9 for 2016? Round your answers to two decimal places. Do not round intermediate calculations. Cash conversion cycle Total assets turnover ROA 36.01 days 3.17 19.01 %

a. Calculate Chastain's cash conversion cycle. Round your answer to two decimal places. Do not round intermediate calculations. 55.83 days b. Assuming Chastain holds negligible amounts of cash and marketable securities, calculate its total assets turnover and ROA. Round your answers to two decimal places. Do not round intermediate calculations. Total assets turnover ROA 2.79 16.71 % c. Suppose Chastain's managers believe that the inventory turnover can be raised to 8.9 times. What would Chastain's cash conversion cycle, total assets turnover, and ROA have been if the inventory turnover had been 8.9 for 2016? Round your answers to two decimal places. Do not round intermediate calculations. Cash conversion cycle Total assets turnover ROA 36.01 days 3.17 19.01 %

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 46E

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