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 %

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Consider the following cash flows: Cash Flow Year 0 -$ 33,500 1 14,500 2 17,200 3 11,900 What is the IRR of the cash flows? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Internal rate of return %
n.com Connect (i) Consider the following cash flows: Year Cash Flow 0 -$29,600 1 14,100 2 14,800 3 11,200 a. What is the profitability index for the cash flows if the relevant discount rate is 11 percent? Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161 b. What is the profitability index if the discount rate is 16 percent? Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161. c. What is the profitability index if the discount rate is 23 percent? Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161. a. Profitability index b. Profitability index c. Profitability index.
Consider the following cash flows: Year Cash Flow 0 –$ 32,500 1 14,300 2 17,400 3 11,700 What is the IRR of the cash flows? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
1/1 CengageNOWv2 | Online teachin X ow.com/ilrn/takeAssignment/takeAssignmentMan.uo?invoker=&takeAssignmentSessionLocator=&inprogress=false The IRR method assumes that cash flows are reinvested at OA. an average of the internal rate of return and the discount rate O B. the internal rate of return OC. the lower of the company's discount rate or internal rate of return OD. the company's discount rate
Consider the following cash flows: Year 0 1 2 Cash Flow -$ 32,500 13,800 17,900 11, 200 What is the IRR of the cash flows? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Internal rate of return %
What is the IRR of the following set of cash flows? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Year Cash Flow 0 $ 16,600 1 7,300 2 8,600 3 7,100 IRR %
Which of the following machine to be selected based on The average rate of return. with clear steps Sr. Machine A Machine B No. RO. RO. Year Cash outflow/ Cash outflow/ Cash inflow Cash inflow 0 (50,000.00) (50,000.00) 1 6,000.00 15,000.00 2 7,200.00 17,500.00 3 7,350.00 18,000.00 4 8,200.00 5,000.00 5 9,820.00 - 6 10,200.00 - 7 12,500.00 - 61,270.00 55,500.00
What is the payback period for the following set of cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Year 01234 Cash Flow -$ 5,700 1,350 1,550 1,950 1,450 Payback period years
Consider the following cash flows: Year Cash Flow 0 1 2 3 $19,400 10,400 9,320 6,900 What is the IRR of the above set of cash flows? (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Internal rate of return 4 Prev
Consider the following cash flows: Year Cash Flow 0 $32,500 123 13,300 18,400 10,700 What is the IRR of the cash flows? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Internal rate of return %
The following set of cash flows has two internal rates of return. Calculate the 2nd IRR for the cash flows. (Enter percentages as decimals and round to 4 decimals). Hint: you will need to use a guess in the Excel function. Time 0 1 2 3 4 CF 8125 -17000 8000 -7500 9000
Consider the following cash flows: Year Cash Flow 0 1 2 3 $33,000 13,900 17,800 11,300 Required: What is the IRR of the above set of cash flows? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) Internal rate of return