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Which of the following would not help to increase the return on assets for the retail...

Which of the following would not help to increase the return on assets for the retail segment in the Cooper Processing Case Increase prices for the retail segment Reduce average inventory for the retail segment Sale and leaseback of the packaging equipment Cannot be determined

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Answer #1

Increase prices for the retail segment would not help to increase the return on assets for the retail segment in the Cooper Processing Case because an increase in price results to iincrease in days' sales in inventory, which means that the company is holding inventory for a longer period, which increases total assets, causing a decrease in return on assets.

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