Columbus, Inc. is really making it big in Wisconsin. Their sales predictions for next year are $10 million, and fixed assets will grow to $2,000,000. Projected earnings before interest and taxes are 25% of sales with a 40% tax rate. Columbus policies in the past have been carefully monitored. They have maintained an interest rate of 12% on all short- and long-term loans, which totals 36% of all assets. Columbus Inc. is now struggling over how their investment in current assets is affecting the return on common shareholders' equity.What is the company's return on equity based upon a working capital strategy calling for a current asset-to-sales ratio of 40%? Discuss the risk-return relationship involved in managing the firm's working capital? What are some of the risk-return trade-offs associated with adopting a more liberal trade credit policy