2 The Smart Logistics Company has appointed a new warehouse manager to assist with the re-organising of their infrastructure so as to increase their competitiveness. The firm's financial statement for 2015 showed the following: Excerpt from the 2015 financial statements of Smart Logistics Annual sales turnover R60 million Fixed assets R20 million Inventory R8 million Debtors R3 million Creditors R2.5 million Cash in bank R1 million Purchases R35 million Other costs R7 million 2.1 As a first step to help the new warehouse manager, use the above information to complete the diagram below and calculate Smart Logistics' return on investment. Sales Operating Income Profit Margin ROI Current Assets 2:2 2.2 Calculate the return on Investment (ROI) should the new manager and his team be able to reduce purchasing by 7% and decrease their inventory holding by 10%. (Use the previous diagram to make the necessary changes)