Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

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

image text in transcribed
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 walt) The director of marketing proposes that you increase inventories by 25 percent a major investment to youl)She has also given the information in the following table. Use Figure 23 Proposed impact of Inventory Category Current Values Increase 2.590.000 305mprovement) Cost of goods sold $ 1850 000 ON Vare expenses 370.000 20%-reduction Food expenses $ 100 10%) $ 395.000 26. Accounts receivable $ 271.000 09 Other current assets S 656000 Fored assets 672.0000 a.Using the Information given, complete the following table and calculate the ROA for current values and new values Round "ROM to 2 decimal places) Category New Values Cost of goods sold Variantes Current Values $ 2.590.000 1350 000 370.000 129.500 36.000 273.000 Inventory Accounts receive Omer current asses Food ROA 5 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 walt) The director of marketing proposes that you increase inventories by 25 percent a major investment to youl)She has also given the information in the following table. Use Figure 23 Proposed impact of Inventory Category Current Values Increase 2.590.000 305mprovement) Cost of goods sold $ 1850 000 ON Vare expenses 370.000 20%-reduction Food expenses $ 100 10%) $ 395.000 26. Accounts receivable $ 271.000 09 Other current assets S 656000 Fored assets 672.0000 a.Using the Information given, complete the following table and calculate the ROA for current values and new values Round "ROM to 2 decimal places) Category New Values Cost of goods sold Variantes Current Values $ 2.590.000 1350 000 370.000 129.500 36.000 273.000 Inventory Accounts receive Omer current asses Food ROA 5

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions