As the operations manager for Valley Kayaks $($as described in the previous problem$),$ you find yourself

faced with an interesting situation. Marketing has informed you that they have lost a number of sales

because of a lack of inventory. Kayaks, being seasonal in nature, have to be in stock at your dealers if

they are to be sold $($customers are not willing to wait$).$ The director of marketing proposes that you

increase inventories by $20$ percent $($a major investment to you$).$ She has also given the information in

the following table. Use Figure $2\mathrm{.}3.$

a$.$Using the information given, complete the following table and calculate the ROA for current values

and new values. $($Round "ROA" to $2$ decimal places.$)$

b$.$ Would the projected change in ROA justify the inventory investment?

Yes

No