Answe B and C. spreadsheet is before Band C changes

windustry average ratos have been constant tor the past tour years. Gased on yearend balance sheet figures. b. What do you think would happen to Cary's ratios if the company initiated cost-cutting measures that allowed it to hold lower levels of inventory and substantially decrease the cost of goods sold? To answer this question, suppose inventories drop to $700,000 and the inventory turnover is 5.0. (HINT: In this case, cost of goods sold will change.) c. Suppose Cary Corporation is considering installing a new computer system that would provide tighter control of inventories, accounts receivable, and accounts payable. If the new system is installed, the following data are projected (rather than the data given earlier) for the indicated balance sheet and income statement accounts: How do these changes affect the projected mtios and the comparison with the industry averages? (Note that any changes to the income statement will change the amount of retained earnings