17 [10 points] M4 Silica Inc. has provided the following data for 2016 and 2019. Calculate each of the five components of RoE for each of the years. Comment on the impact of changes in the key components and how they have affected RoE between 2016 and 2019. Income Statements and Balance Sheets 2016 2019 Income Statement Data ($ 000s) Revenues 542.0 850.0 = Operating Income Depreciation Interest Expense 38.0 58.0 3.0 9.0 3.0 Pretax Income 32.0 49.0 Income Taxes 8.3 12.3 Net Income after tax 23.7 36.8 Balance sheet date ($ 000s) Fixed assets 41.0 70.0 Total assets 245.0 291.0 Working capital 123.0 157.0 Total debt 16.0 Total Shareholders equity 159.0 230.8

Income Statements and Balance Sheets 2019 2016 Income Statement Data ($ 000s) Revenues 542.0 - Operating Income 88.0 Depreciation 3.0 Interest Expense 3.0 Pretax Income 82.0 Income Taxes 8.3 Net Income after tax 23.7 850.0 58.0 9.0 49.0 12.3 86.8 Balance sheet date ($ 000s) Fixed assets Total assets Working capital Total debt Total Shareholders equity 41.0 215.0 123.0 16.0 159.0 70.0 291.0 157.0 280.8