Esignment Saved 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 15 percent (a major investment to you). She has also given the information in the following table. Use Egute 23 Proposed Impact of Inventory Category Current Values Increase Sales $ 2,870,000 25% (amprovement) Cost of goods sold 5 2,050,000 OX Variable expenses $ 410,000 15% - reduction Fixed expenses 143,500 20% (increase Inventory 540,000 15% Accounts receivable $ 390,000 Other current assets 774,000 Fixed assets 519,000 5 $ 5 ex OX OX a.Using the information given, complete the following table and calculate the ROA for current values and now volues. (Round "ROA" to 2 decimal places.) New Values Category Sales Cost of goods sold Vanable expenses Fixed expenses Inventory Accounts receivable Other current assets Fixed assets ROA Current Values $ 2,870,000 S 2,050.000 $ 410,000 $ 143,500 $ 540,000 5 390,000 $ 774.000 $ 619,000