Terry's internal auditor is afraid that some inventory has become obsolete. She has gathered the following information about the inventory items she is worried about:

(Inventory Items) (Historical Cost) (Current Sales Price) (Disposal Cost) (Replacement Value)

TGIT $60 $85 $21 $66

TT9G5 $75 $90 $17 $86

After talking with the Sales department, she estimates that the normal markup on TGIT would be $26 and $36 on TT9G5. They currently have 18,000 units of TGIT and 27,000 units of TT9G5 in stock. Terrys management has opted to use the direct method on any inventory write downs.

Terrys management would like to know the effect of the sale on the following ratios:

Inventory Turnover (COGS / average total inventory) Current Ratio ROA