You don't need excel sheet to answer a. Calculate Chastain's cash conversion cycle. Round your answer to two decimal places. Do not round intermediate calculations.71.04 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 turnoverROA2.7816.71Cash 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.%36.23.17days19.01% 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.Open spreadsheeta. Calculate Chastain's cash conversion cycle. Round your answer to two decimal places. Do not round intermediate calculations.71.041 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 turnoverROA2.7816.71 %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 decimalplaces. Do not round intermediate calculations.

The formula for Cash Conversion Cycle is:CCC=DIO+DSO−DPOWhere:DIO stands for Days Inventory…

Answered: cash conversion cycle.

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter16: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 11P

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The following selected information is taken from the financial statements of Arnn Company for its most recent year of operations: During the year, Arnn had net sales of 2.45 million. The cost of goods sold was 1.3 million. Required: Note: Round all answers to two decimal places. 1. Compute the current ratio. 2. Compute the quick or acid-test ratio. 3. Compute the accounts receivable turnover ratio. 4. Compute the accounts receivable turnover in days. 5. Compute the inventory turnover ratio. 6. Compute the inventory turnover in days.
Chastain Corporation is trying to determine the effect of its inventory turnover ratio and days sales outstanding (DSO) on its cash conversion cycle. 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's payables deferral period is 40 days. a.Calculate Chastain's cash conversion cycle. Round your answer to two decimal places. Do not round intermediate calculations. 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. 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…
Chastain Corporation is trying to determine the effect of its inventory turnover ratio and days sales outstanding (DSO) on its cash conversion cycle. 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's payables deferral period is 40 days. Assume 365 days in year for your calculations. A. Calculate Chastain's cash conversion cycle. Round your answer to two decimal places. Do not round intermediate calculations. 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. 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…
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Chastain Corporation is trying to determine the effect of its inventory turnover ratio and days sales outstanding (DSO) on its cash conversion cycle. Chastain's 2018 sales (all on credit) were $106,000; its cost of goods sold is 80% of sales; and it earned a net profit of 4%, or $4,240. It turned over its inventory 6 times during the year, and its DSO was 40 days. The firm had fixed assets totaling $27,000. Chastain's payables deferral period is 35 days. Assume 365 days in year for your calculations. Calculate Chastain's cash conversion cycle. Do not round intermediate calculations. Round your answer to two decimal places. days Assuming Chastain holds negligible amounts of cash and marketable securities, calculate its total assets turnover and ROA. Do not round intermediate calculations. Round your answers to two decimal places. Total assets turnover ROA % Suppose Chastain's managers believe that the inventory turnover can be raised to 9.4 times. What would…
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