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War Eagle Beverages LLC ended 2 0 2 2 with Sales Revenue of $ 1 2 , 0 0 0 , 0 0 0 and
War Eagle Beverages LLC ended with Sales Revenue of $ and COGS of $ Total Overhead, otherwise known as Operating Expenses, was $ Inventory has averaged $ throughout the year and is at the same level at yearend. Net AR is $ Cashonhand is $ and there are no PrePaid Expenses. Fixed Assets are $ Assume there is no interest or taxes, so EBIT and Net Income will be the same.
We are projecting that if War Eagle Beverages LLC hires an AU SCMN grad to help them optimize inventory, they could deliver the same performance in but with $ less investment in inventory. Sales, COGS, Cash, AR Prepaid Expenses, and Fixed Assets are projected to have the same values in as in Assume that inventory carrying costs Holding Costs are and that the carrying cost savings from reduced inventories will reduce Total Overhead Operating Expenses but that Fixed Assets will not be affected. Also, assume that the Average Inventory throughout the year will be at the same level as at yearend. Use this information to answer the following questions:
What is the projected ROA for
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Below
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Between and
Between and
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