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 9%. Its inventory turnover was 5.0 times during the year, and its DSO was 38 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 44 days. Suppose Mako's managers believe the annual inventory turnover can be raised to 10 times without affecting sale or profit margins. What would Mako's ROA have been if the inventory turnover had been 10 for the year?

22.46%

24.63%

33.14%

29.42%