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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 $5.0 million (all on
Mako Industries is considering changes in its working capital policies to improve its cash flow cycle. Mako's sales last year were $5.0 million (all on credit), and its net profit margin was 10%. Its inventory turnover was 5.0 times during the year, and its DSO was 30 days. Its annual cost of goods sold was $3.5 million. The firm had fixed assets totaling $600,000. Mako's payables deferral period is 60 days. Calculate Mako's cash conversion cycle
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