: With the Strategic Profit Model below, answer the following questions. (1) What is the firm's Return on Assets (ROA)? Please show your calculation steps in your answer. (8 marks) (2) Suppose the firm manages to reduce its inventory to 7000 and still achieve the same level of sales. Discuss the impact of this change on its Return on Assets (ROA) and overall profitability. (7 marks) SALES 250,000 GROSS MARGIN STRATEGIC PROFIT MODEL COST OF GOODS SOLD 100,000 VARIABLE EXPENSES NET PROFIT MARGIN TOTAL EXPENSES 20,000 FIXED EXPENSES 35,000 TIMES INVENTORY 10,000 ASSET TURNOVER CURRENT ASSETS ACCOUNTS RECEIVABLE 5,000 OTHER CURRENT FIXED ASSETS 105,000 5,000 RETURN ON ASSETS NET PROFIT SALES SALES TOTAL ASSETS