The table below shows 2017 total revenues, cost of goods sold, earnings available for common stockholders, total assets, and stockholders’ equity for three companies competing in the local beverages market in Thailand—Gold Drinks, Tropical Fresh, and Sun Supplies. All the values are in Thai Baht (THB) thousands. 

a. Use the information given to calculate each firm’s profitability in as many different ways as you can. Which firm is most profitable? Explain why it might be difficult to pick one as the most profitable.

b. For each firm, ROE is greater than ROA. Explain why this is the case. Compare the ROE and ROA for each firm. Can you determine which one has the least proportion of debt in its capital structure?

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Revenues Cost of goods sold Earnings Total assets Shareholders equity Gold Drinks 125,577 49,377 16,869 261,798 69,174 Tropical Fresh 188,385 84,615 18,975 222,375 33,726 Sun Supplies 19,308 7,734 2,529 29,361 6,390