7-Eleven Malaysia Holding Berhad's annual report for the fiscal year ending 2021 is available at their official website ( please browse and refer there). (At least two years of comparable financial statements are required.)

Question

c) Write your opinion on what you think would happen to its ratios if the company initiated cost-cutting measures that allowed it to hold lower levels of inventory and substantially decreased the cost of goods sold. No calculations are necessary. Think about which ratios would be affected by changes in these two accounts. (10 marks)