Quantify the Effects of Managerial Actions on ROPI and Components

Rincon Farms Inc. reports the following financial data just prior to its fiscal year ended $5$in December $31,2019($ $ millions$).$

Note: Complete the entire question in Excel and format each answer to two decimal places. Then enter the answers into the provided spaces below with two decimal places.

a$.$ Compute ROPI for FY$2019$ and FY$2020.$

b$.$ The company is contemplating taking the following actions before the end of $2019.($These actions are not reflected in any of the financial data reported above.$)$ For each of the actions, determine the effect on

residual operating income for the fiscal year ended December $31,2020.$

$1.$Reduce inventory and accounts payable by the following percentages $(10\%$ on iventory and $5\%$ on accounts payable. $2.$Decrease PPE by $20\%$with no impact on NOPAT. $3.$Engage in a sale leaseback of a major building. The company will sell the following percentage of its PPE at book value ncrease rental costs by the following amount after tax, per year$(50\%$ PPE and $$30$ for rental costs after tax$)4.$ increase debt $($$$300)$ and interest expense$($$$15)$

ROPI

Action $1=?$

Action $2=?$

Action $3=?$

Action $4=?$