For the prior problem, management wants to double the return on assets, without affecting sales, cost of goods sold, variable expenses, fixed expenses, or fixed assets. Rather it wants to focus on either inventory or accounts receivable.
a. Can management focus on either inventory reductions or accounts receivable reductions alone?
b. How can it achieve this objective?
c. Do you see any downsides in pursuing this objective through a focus on inventory/ accounts receivable reductions?