Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose that a company was able to reduce all of the purchase costs by 5% by using new sourcing strategies. Purchases $200,000 Other Costs

Suppose that a company was able to reduce all of the purchase costs by 5% by using new sourcing strategies. Purchases $200,000 Other Costs $100,000 Plus Sales $400,000 Minus Total Costs $300,000 Inventory $270,000 Profit $100,000 Divided by Total Assets $1,000,000 ROA 10% (a) [1 PT] Compute the new purchase costs after the purchase costs are reduced by 5%. (b) [1 PT] Compute the new total costs after the purchase costs are reduced by 5%. (c) [1 PT] Compute the new profit after the purchase costs are reduced by 5%. (d) [1 PT] Compute the new value of inventory after the purchase costs are reduced by 5%. (e) [1 PT] Compute the new value of total assets after the purchase costs are reduced by 5%. (f) [1 PT] Compute the new return on assets after the purchase costs are reduced by 5%. Write your answer as a percentage rounded to two decimal places.

Step by Step Solution

3.44 Rating (176 Votes )

There are 3 Steps involved in it

Step: 1

a 6 c Purchase Cost d New New Purchase Other Cost Total Cost New New Profit Sales ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals of Financial Management

Authors: Eugene F. Brigham, Joel F. Houston

14th edition

1285867971, 978-1305480742, 1305480740, 978-0357686393, 978-1285867977

More Books

Students also viewed these Corporate Finance questions