Sales of your company is $1 mil, your total assets are $600k, your purchase cost is half of your sales. Your total cost is $800k Inventory accounts for 20% of total assets. If purchase cost reduces by 10% inventory reduces by 10 % too, What will be% change in ROA ? If you show calculations - partial points will be awarded if wrong
Sales of your company is $1 mil, your total assets are $600k, your purchase cost is half of your sales. Your total cost is $800k Inventory accounts for 20% of total assets. If purchase cost reduces by 10% inventory reduces by 10 % too, What will be% change in ROA ? If you show calculations - partial points will be awarded if wrong
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Sales of your company is $1 mil, your total assets are $600k, your purchase cost is half of your sales. Your total cost is $800k
Inventory accounts for 20% of total assets.
If purchase cost reduces by 10% inventory reduces by 10% too,
What will be% change in ROA?
If you show calculations - partial points will be awarded if wrong](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F15a162e0-d452-46a1-980a-cc3e7e8b37cf%2F57854148-3d9c-4768-9704-52f1fdd9591f%2Fzwh394_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Sales of your company is $1 mil, your total assets are $600k, your purchase cost is half of your sales. Your total cost is $800k
Inventory accounts for 20% of total assets.
If purchase cost reduces by 10% inventory reduces by 10% too,
What will be% change in ROA?
If you show calculations - partial points will be awarded if wrong
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