2. Dig Inn operates locally farm-sourced restaurants in NYC. The most recent income statement is below: $ For the year ended December 31, 2018 (dollars in thousands) Sales revenue COGS Gross profit Selling and general and administrative expenses Operating income Interest expense Income before income taxes Income tax expense Net Income 11,292 4,149 7,143 6,288 855 125 730 216 514 Dig Inn's total assets were $7,874 at 12/31/18 and $7,735 at 12/31/17 (also in thousands of dollars) Required: Assume next year Dig Inn earns 20% more profit than in 2018 and its total assets increase 5%. Will the company's ROA next year be higher, lower, or the same as in 2018? Why? Show all calculations. 3. Argos operates an Inn in Ithaca, NY. Presented below are the selected income statement and balance sheet amounts: Current Prior Year Year Net sales $ 3,643,714 $ 3,086,067 Net income 419,190 369,180 Average shareholders' equity 2,263,967 2,031,134 Average total assets 3,948,038 3,612,792 Required: 1. Compute ROA for the current and prior year and explain the meaning of the change. 2. Explain the major cause(s) of the change in ROA using ROA profit driver analysis