The following balances and turnover ratios for individual operating assets and operating liabilities have been calculated using end-of-year figures based on Kamloops Inc.s reformulated 2021 Balance Sheet:

Balance Turnover

Operating cash $ 20,000 200.0000

Accounts receivable $ 250,000 16.0000

Inventory $ 500,000 8.0000

Property, plant & equipment $ 900,000 4.4444

Accounts payable $ 275,000 14.5454

Provisions $ 175,000 22.8571

Net Operating Assets $1,220,000

Assuming that Kamloops operating profit margin after tax remains the same, what will happen to its RNOA if the Accounts Receivable turnover decreases to 15, the inventory turnover increases to 10, and the Accounts Payable turnover increases to 18?

	1.	Kamloops RNOA will increase
	2.	Kamloops RNOA will decrease
	3.	It is not possible to determine how the changes will affect Kamloops RNOA based on the information provided
	4.	Kamloops RNOA will remain the same