Presented below are a set of financial ratios provider for Catalyst X Ltd. The company manufacture cycle components to put on racing cycles. Return on Assets Return on Equity Debt to Assets Days payables outstanding Days sales outstanding Inventory turnover (days) 2015 5% 2% 0.40x 15 days 43 days 25 days 2016 3% -1% 0.45x 16 days 42 days 20 days 2017 4% 0% 0.50x 17 days 43 days 30 days 2018 2% -3% 0.55x 17 days 50 days 12 days 2019 5% 0% 0.60x 17 days 70 days 10 days Further notes: - The credit terms for the company's purchases are 30 days. - The credit terms offered by the company are 25 days. Based on the above information, what would be the effect of a downwards revaluation of an asset on current year ROE? Indicate by placing the number in the marked square -> 1 2 A revaluation would increase the value of ROE A revaluation would decrease the value of ROE A revaluation would have no effect on ROE The effect could not be determined 3 4