A company having current assets of Rs 25 lakh, fixed assets of Rs 15 lakh, annual sales of Rs 1 crore and EBIT of 12% plans to double the level of current assets in order to ensure greater liquidity....

A company having current assets of Rs 25 lakh, fixed assets of Rs 15 lakh, annual sales of Rs 1 crore and EBIT of 12% plans to double the level of current assets in order to ensure greater liquidity. The new current asset is to be financed by equity. Find the asset turnover ratio and return on investment under the original plan and after the current asset expansion.