Credit Sales	$2,500,000
Net Profit (12%)	$300,000
Inventory Turnover	8
DSO	45
Fixed Assets	$800,000
Payables days	40
#1
Calculating Cash Conversion Cycle (CCC):
CCC = DSO + DIO - DPO				DSO is days sales outstanding
DSO =		45		DIO is days inventory outstanding
DIO = 360 / Inventory Turnover = 360/8 = 45		45		DPO is days payables outstanding
DPO = Payables deferral period =		40
	CCC	50
#2
Total Assets Turnover =	Turnover / Total Assets
				Inventory / (Cost of sales / 365)
Total Assets:
Fixed Assets	$800,000			DSO = AR / (Revenue / 360)
Accounts Receivable	$312,500			AR = DSO * (Revenue / 360)
Inventory	$275,000
	$1,387,500			Inventory Turnover = COGS / Inventory
				Inventory = COGS / Inventory Turnover
Total Assets Turnover =	1.80
Return on Assets (ROA) = Net Income / Total Assets
Return on Assets (ROA) =	0.22
#3
Total Assets Turnover =	Turnover / Total Assets
				Inventory / (Cost of sales / 365)
Total Assets:
Fixed Assets	$800,000			DSO = AR / (Revenue / 360)
Accounts Receivable	$312,500			AR = DSO * (Revenue / 360)
Inventory	$183,333
	$1,295,833			Inventory Turnover = COGS / Inventory
				Inventory = COGS / Inventory Turnover
Total Assets Turnover =	1.93
Return on Assets (ROA) = Net Income / Total Assets
Return on Assets (ROA) =	0.23
Calculating Cash Conversion Cycle (CCC):
CCC = DSO + DIO - DPO				DSO is days sales outstanding
DSO =		45		DIO is days inventory outstanding
DIO = 360 / Inventory Turnover = 360/12 = 30		30		DPO is days payables outstanding
DPO = Payables deferral period =		40
	CCC	35