Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question 4 5 pts Mako Industries is considering changes in its working capital policies to improve its cash flow cycle. Mako's sales last year were
Question 4 5 pts 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. Assume Mako holds negligible amounts of cash and marketable securities, calculate its total asset turnover. 2.71x 0 2.97% 2.82x 2.69x
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started