Question: Financial Data for ABC Logistics: - Net Income: $2,000 - Current Assets: $15,000 (Receivables $5,000 and inventory $9,000, Cash $1,000 ) - Fixed Assets: $5,000

 Financial Data for ABC Logistics: - Net Income: \$2,000 - Current

Financial Data for ABC Logistics: - Net Income: \$2,000 - Current Assets: $15,000 (Receivables $5,000 and inventory $9,000, Cash $1,000 ) - Fixed Assets: $5,000 - Total Equity: $10,000 - Sales Revenue: $25,000 Operational Data for ABC Logistics: - Accounts Receivable: $3,000 - Accounts Payable: $2,000 - Operating Expenses: $8,000 (logistics costs: 3,000 1. Calculate ROA 2. Calculate ROA given a. 10% decrease inventory b. 8% increase logistics c. 10% increase in sales d. All 3 Assume Taxes stay same (for now)

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To calculate the Return on Assets ROA for ABC Logistics we use the formula textROA fractextNet IncometextTotal Assets times 100 Step 1 Calculate Initi... View full answer

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