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Quantify the Effects of Managerial Actions on ROPI and Components Rincon Farms...

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Accounting

Quantify the Effects of Managerial Actions on ROPI and Components
Rincon Farms Inc. reports the following financial data just prior to its fiscal year ended 5in December 31,2019( $ millions).
Note: Complete the entire question in Excel and format each answer to two decimal places. Then enter the answers into the provided spaces below with two decimal places.
a. Compute ROPI for FY2019 and FY2020.
b. The company is contemplating taking the following actions before the end of 2019.(These actions are not reflected in any of the financial data reported above.) For each of the actions, determine the effect on
residual operating income for the fiscal year ended December 31,2020.
1.Reduce inventory and accounts payable by the following percentages (10% on iventory and 5% on accounts payable. 2.Decrease PPE by 20%with no impact on NOPAT. 3.Engage in a sale leaseback of a major building. The company will sell the following percentage of its PPE at book value ncrease rental costs by the following amount after tax, per year(50% PPE and $30 for rental costs after tax)4. increase debt ($300) and interest expense($15)
ROPI
Action 1=?
Action 2=?
Action 3=?
Action 4=?
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