Problem 1-4 (Static) Consider the following financial data from the past year for Midwest Outdoor Equipment...

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Problem 1-4 (Static) Consider the following financial data from the past year for Midwest Outdoor Equipment Corporation. Annual sales Net income Cost of goods sold Total assets Inventory Receivables $24,324,000 2,975,000 12,600,000 10,550,000 2,875,000 3,445,000 The Midwest Outdoor Equipment Corporation has entered into a new contract with a major supplier of raw materials used in the manufacturing process. Under the new arrangement, called vendor managed inventory, the supplier manages its raw material inventory inside the manufacturer's plant and bills only the manufacturer when the manufacturer consumes the raw material. This is expected to reduce total assets by $2 million. What is the expected change in return on assets? Note: Round your answer to 2 decimal places. Answer is complete but not entirely correct. Expected change in return on assets 0.35 % Problem 1-4 (Static) Consider the following financial data from the past year for Midwest Outdoor Equipment Corporation. Annual sales Net income Cost of goods sold Total assets Inventory Receivables $24,324,000 2,975,000 12,600,000 10,550,000 2,875,000 3,445,000 The Midwest Outdoor Equipment Corporation has entered into a new contract with a major supplier of raw materials used in the manufacturing process. Under the new arrangement, called vendor managed inventory, the supplier manages its raw material inventory inside the manufacturer's plant and bills only the manufacturer when the manufacturer consumes the raw material. This is expected to reduce total assets by $2 million. What is the expected change in return on assets? Note: Round your answer to 2 decimal places. Answer is complete but not entirely correct. Expected change in return on assets 0.35 %