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Mako Industries is considering changes in its working capital policies to improve its cash flow cycle. Mako's sales last year were $6.0 million (all on

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Mako Industries is considering changes in its working capital policies to improve its cash flow cycle. Mako's sales last year were $6.0 million (all on credit), and its net profit margin was 8%. Its inventory turnover was 7.0 times during the year, and its DSO was 45 days. Its annual cost of goods sold was $4.20 million. The firm had fixed assets totaling $600,000. Mako's payables deferral period is 30 days. Suppose Mako's managers believe the annual inventory turnover can be raised to 8 times without affecting sale or profit margins. What would Mako's ROA have been if the inventory turnover had been 8 for the year? 0 24.33% 25.74% O 26.57% O 21.03%

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