2A2R COLONIE INC. EXPECTS TO REPORT NET INCOME OF AT LEAST $10 MILLIO...

68.

CSO: 2A2d

LOS: 2A2r

Colonie Inc. expects to report net income of at least $10 million annually for the

foreseeable future. Colonie could increase its return on equity by taking which of the

following actions with respect to its inventory turnover and the use of equity financing?

Inventory Turnover

Use of Equity Financing

a.

Increase;

Increase.

b.

Increase;

Decrease.

c.

Decrease;

Increase.

d.

Decrease;

Decrease.