Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Mako Industries is considering changes in its working capital policies to improve its cash flow cycle. Mako's sales last year were $5.5 million (all on

image text in transcribed

Mako Industries is considering changes in its working capital policies to improve its cash flow cycle. Mako's sales last year were $5.5 million (all on credit), and its net profit margin was 10%. Its inventory turnover was 6.0 times during the year, and its DSO was 32 days. Its annual cost of goods sold was $3.85 million. The firm had fixed assets totaling $725,000. Mako's payables deferral period is 55 days. Calculate Mako's cash conversion cycle 68.00 days O 47.14 Days 67.14 days 37.83 days

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Multinational Business Finance

Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett

16th Edition

013749601X, 978-0137496013

More Books

Students also viewed these Finance questions

Question

Explain how to reward individual and team performance.

Answered: 1 week ago