Problem 13-43 ROI and Performance Evaluations {LO 13-2, 13-4, 13-8] {The folio wing information applies to the questions displayed below} Kenneth Washburn, head of the Sporting Goods Division of Reliable Products, has just completed a miserable nine months. \"If it could have gone wrong, it did. Sales are down, income is down, inventories are bloated, and quite frankly, I'm beginning to worry about myjob," he moaned. Washburn is evaluated on the basis of ROI. Selected gures for the past nine months follow. Sales $ 9 , 999 , 999 perating income 615,999 Invested capital 11,259,999 In an effort to make something out of nothing and to salvage the current year's performance, Washburn was contemplating implementation of some or all of the following four strategies: a. Write off and discard $108,000 of obsolete inventory. The company will take a loss on the disposal. b. Accelerate the collection of $138,000 of overdue customer accounts receivable. c. Stop advertising through year-end and drastically reduce outlays for repairs and maintenance. These actions are expected to save the division $243,000 of expenses and will conserve cash resources. d. Acquire two competitors that are expected to have the following nancial characteristics: Projected Projected Operating Projected Invested Sales Expenses Capital Anderson Manufacturing $4,859,999 $3,519,999 $11,259,999 Palm Beach Enterprises ?,119,999 5,439,999 8,599,999 roblern 13-43 Part 4 -a. Determine the ROI of the investment in Anderson Manufacturing and do the same for the investment in Palm Beach Enterprises. -b. If Washburn wants to maximize ROI, what should the company do? 4-a. Determine the ROI of the investment in Anderson Manufacturing and do the same for the investment in Palm Beach Enterprises. 4-b. If Washburn wants to maximize ROI, what should the company do? Complete this question by entering your answers in the tabs below. Req 4A Req 4B Determine the ROI of the investment in Anderson Manufacturing and do the same for the investment in Palm Beach Enterprises. ROI Anderson Manufacturing Palm Beach Enterprises