Question
Assume your company is looking at how much to invest in current assets. Complete the following table (4 pts 1 pt. per row.) Aggressive Moderate
Assume your company is looking at how much to invest in current assets. Complete the following table (4 pts 1 pt. per row.)
|
| Aggressive | Moderate | Conservative |
| Current Assets | 28 | 30 | 32 |
| Fixed Assets | 20 | 20 | 20 |
| Total Assets
|
|
|
|
| Current Liabilities | 18 | 18 | 18 |
| Projected Sales | 59 | 60 | 61 |
| Projected Profit | 5.9 | 6.0 | 6.1 |
| Return on Assets (ROA) |
|
|
|
| Net Working Capital (NWC) |
|
|
|
| Current Ratio
|
|
|
|
Based on the table above, explain why the conservative column has the highest projected profit but the lowest return on assets?
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Principles Of Commodity Economics And Finance
Authors: Daniel P. Ahn
1st Edition
0262038374, 9780262038379
