Value Delivery Networks Assignment #3 i. If leverage increases by 50%, what will be the change in return on net worth? Assignment #3 - Financial Analysis Exercise j. If cost of goods sold increases by 15%, what will be the change in profit margin? Given: Initial Markup Total Cost of Goods Sold Average Inventory at Cost Gross Sales Reductions Total Expenses Total Assets Net Worth/Owner's Equity 65% 55% $360,000 $3,200,000 $400,000 $600,000 $2,800,000 $900,000 1. For each of the following - determine (SHOW ALL CALCULATIONS and comment on what these results MEAN): a. Profit Margin b. Asset Turnover c. Inventory Turnover d. Return on Assets e. Leverage f. Return on Net Worth g. If sales increase by 5%, what will be the change in asset turnover? h. If inventory accounts for 60% of total assets and this investment declines by 10%, what will be the change in return on net worth? Value Delivery Networks Assignment #3 i. If leverage increases by 50%, what will be the change in return on net worth? Assignment #3 - Financial Analysis Exercise j. If cost of goods sold increases by 15%, what will be the change in profit margin? Given: Initial Markup Total Cost of Goods Sold Average Inventory at Cost Gross Sales Reductions Total Expenses Total Assets Net Worth/Owner's Equity 65% 55% $360,000 $3,200,000 $400,000 $600,000 $2,800,000 $900,000 1. For each of the following - determine (SHOW ALL CALCULATIONS and comment on what these results MEAN): a. Profit Margin b. Asset Turnover c. Inventory Turnover d. Return on Assets e. Leverage f. Return on Net Worth g. If sales increase by 5%, what will be the change in asset turnover? h. If inventory accounts for 60% of total assets and this investment declines by 10%, what will be the change in return on net worth