10. Assuming no changes in other variables, which of the following would decrease ROA? a. A decrease in the effective tax rate b. A decrease in interest expense c. An increase in Average Assets d. A decrease in COGS 11. Gladys Tumer borrowed $10,000 from the bank using a 9.50 percent "add-on", one-year installment loan, payable in four equal quarterfy payments. What is the effective annual rate of interest? a. 9.50% b. 10.19% c. 15.78% d. 16.98% Exhibit Cartwright Computing (Use for problems 12 and 13) Cartwright Computing expects to order 126,000 memory chips for inventory during the coming year, and it will use this inventory at a constant rate. Fixed ordering costs are $200 per order; the purchase price per chip is $25; and the firm's inventory carrying costs is equal to 20 percent of the purchase price. (Assume a 360-day year.) 12. Referring to Cartwright Computing above, what is the Economic Ordering Quantity (EOQ) for chips? a. 12,088 b. 3,175 c. 6,243 d. 13,675 13. Referring to Cartwright Computing above, If Cartwright holds a safety stock equal to a 30 -day supply of chips, what is its average inventory level? a. 12,088 b. 3,175 c. 6,243 d. 13,675 14. Equity equals: a. Assets + Liabilities b. Liabilities - Assets c. Assets - Liabilities d. None of the above 10. Assuming no changes in other variables, which of the following would decrease ROA? a. A decrease in the effective tax rate b. A decrease in interest expense c. An increase in Average Assets d. A decrease in COGS 11. Gladys Tumer borrowed $10,000 from the bank using a 9.50 percent "add-on", one-year installment loan, payable in four equal quarterfy payments. What is the effective annual rate of interest? a. 9.50% b. 10.19% c. 15.78% d. 16.98% Exhibit Cartwright Computing (Use for problems 12 and 13) Cartwright Computing expects to order 126,000 memory chips for inventory during the coming year, and it will use this inventory at a constant rate. Fixed ordering costs are $200 per order; the purchase price per chip is $25; and the firm's inventory carrying costs is equal to 20 percent of the purchase price. (Assume a 360-day year.) 12. Referring to Cartwright Computing above, what is the Economic Ordering Quantity (EOQ) for chips? a. 12,088 b. 3,175 c. 6,243 d. 13,675 13. Referring to Cartwright Computing above, If Cartwright holds a safety stock equal to a 30 -day supply of chips, what is its average inventory level? a. 12,088 b. 3,175 c. 6,243 d. 13,675 14. Equity equals: a. Assets + Liabilities b. Liabilities - Assets c. Assets - Liabilities d. None of the above