E3-31.Compute ROA and Adjusted ROA ANALYST ADJUSTMENTS 3.1 CSX Corpor ation reported the following in its tax footnote to its 2019 financial statements. Use this information to answer the requirements.

$millions 2019 2018 2017 Net income . .. .. .. . ... . .. . ... . .. $ 3,331 $ 3,309 $ 5,471 Interest expense, net . .. .. .. .. .... 737 639 546 Average total assets .. .. .. .. .. . ... 37,493 36,234 35,577 Compute

(a) return on assets, and

(b) adjusted return on assets, for each of the three years 2017, 2018, and 201 9. Assume a statutory tax rate of 37% for 2017 and 22% for 2018 and 201 9.

(c) Are the two ratios materially different from each other? Explain.