Use the follwing Financial statements for problems 1-5
JW, Inc: Income Statement			2016		2015
Sales			$5,700.00		$5,050.00
CGS			$(4,760.00)		$(4,040.00)
Gross Profit			$1,140.00		$1,010.00
Operating Expenses			$(500.00)		$420.00
Depreciation			$(27.00)		$26.00
EBIT			$613.00		$394.00
Interest Expense			$35.00		$30.00
EBT			$578.00		$364.00
Taxes			$(231.20)		$145.60
NI			$346.80		$218.40
Dividends			$-		$-
RE			$346.80		$218.40
JW, Inc Balance Sheet			2016		2015
Cash & Equivalents			$714.80		$120.00
Accounts Receivable			$500.00		$500.00
Inventory			$300.00		$340.00
Total Current Assets			$1,514.80		$960.00
Fixed Asets			$660.00		$800.00
Accumulated Depreciation			$(227.00)		$(200.00)
Net Fixed Assets			$433.00		$600.00
Total Assets			$1,947.80		$1,560.00
Accounts Payable			$320.00		$300.00
Short-Term Notes Payable			$40.00		$50.00
Accurals			$11.00		$10.00
Total Current Liabilities			$371.00		$360.00
Long-Term Debt			$780.00		$750.00
Total Liabilities			$1,151.00		$1,110.00
Common Stock			$120.00		$120.00
Retained Earnings			$676.80		$330.00
Total Shareholders Equity			$796.80		$450.00
Liabilities and Shareholders Equilty			$1,947.80		$1,560.00

Question

JWs shareholders are once again causing problems. This time, the issue concerns the cash conversion effiency. Shareholders want to see the firm become more efficient at turning revenues into operating cash flow. Assuming that revenues remain unchanged from fiscal year 2016., what level of operating cash flow will be required to generate the following values for the cash conversion effiency?

a. 10%

b. 15%

c. 20%

d. 25%