Question 1 (E13.23) The following data relate to Prestia Company for the past year: Sales revenue $18 000 000 Cost of goods sold 9 900 000 Operating expenses 7 200 000 Average invested capital 9 000 000 Required: 1. Calculate the company's return on sales, investment turnover and ROI for the past year. 2. If the sales and average invested capital remain the same in the current year, to what level would total expenses have to be reduced in order to increase the firm's ROI to 20 per cent? 3. Assume that expenses are reduced, as calculated in requirement 2. Calculate the company's return on sales. Show how the new return on sales and the old investment turnover together would result in an ROI of 20 per cent for the current year.