Can you please solve this with the excel formulas showing? Thanks!

A B . H Cash AR INV 14000 70000 280000 364000 126000 490000 TFG AP Accruals Current Liab Long term debt Common Equity Total Liab & Equity 42000 28000 70000 140000 280000 490000 CA Net fixed Assets Total Assets Use bal sheet above to solve. Your new boss thinks inventory is out of control and wants it dropped to the where the current ratio will be 2.25x, without affecting sales or net income. If inventories are sold and not replaced and the funds generated are used to reduce common equity and if no other changes occur, by how much would ROE change? Sales are $280,000 and Net Income is $21,000. 17 18 2. Klein has a profit margin of 5%, a total assets turnover of 1.5 times, and no debt, hence an equity multiplier of 1.0, and an ROE of 7.5% 19 The CFO recommends taking on some debt, use the money to buy back stock, and raise the equity multiplier to 2.0. The size of the firm (assets) 20 will not change. She thinks operations will be unaffected, but interest on the new debt will lower the profit margin to 4.5%. Assuming we take on 21 the debt, how much will ROE change as a consequence