Computer sales business currently has sales of 100,000 per year, with a stock level of 20% on
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Computer sales business currently has sales of €100,000 per year, with a stock level of 20% on sales. The annual holding cost is 15% of the value. Operating expenses (excluding inventory costs) are €80,000 per year and other assets are valued at €150,000 million.
What is the company's return on assets (ROA)?
How does this change if inventory levels rise to 25% of sales?
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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