both question 7 and 8 (question 8 has two pictures)

thank you very much

Last year Rennie Industries had sales of $395,000, assets of $175,000 (which equals total invested capital), a profit margin of 5.3%, and an equity multiplier of 1.2. The CFO believes that the company could reduce its assets by $51,000 without affecting either sales or costs. The firm finances using only debt and common equity. Had it reduced its assets by this amount, and had the debt/total invested capital ratio, sales, and costs remained constant, how much would the ROE have changed? Do not round your intermediate calculations. 7.03% 5.25% 6.38% 7.32% 5.90% Jordan Inc has the following balance shoet and income statement data: The new CFO thinks that inventories are excessive and could be lowered sufficiently to cause the curre ratio to equal the industry average, 2.25, without affecting either sales or net income. Assuming that The new CFO thinks that inventories are excessive and could be lowered sufficiently to cause the current ratio to equal the industry average, 2.25, without affecting either sales or net income. Assuming that inventories are sold off and not replaced to get the current ratio to the target level, and that the funds generated are used to buy back common stock at book value, by how much would the ROE change? Do not round your intermediate calculations. 16.65% 22.13% 22.55% 21.27% 21.07%