2. Use the table below. Which of these companies has the higher ROE? A B Leverage Ratio = 2.18) 2.45 Return on Sales (ROS) = 8% 9% Avg. Total Assets Avg. Shareholders' Equity Net Income Net Sales Net Sales Avg. Total Assets Net Income Avg. Total Assets Total Asset Turnover = 1.82 1.69 Return on Assets (ROA) = 15% 15% Statement of Cash Flows 8,200 Revenue 2.300 Balance Sheet As of 12/31/2018 YOY Income Statement 2018 2017 Change 1/1/2018 to 12/31/2018 Cash 17.800 9,000 8,800 A/R 50.200 42,000 $ 439,000 Inventory 56,700 43,300 13,400 Cogs Prepaid Expenses 186,600 5,000 (2,700) Current Assets 127,000 99,300 Gross Profit $ 252,400 PPE, net 53.700 49,000 4,700 Land 68,500 30,800 37,700 Salary Expense 77,000 Total Assets 249,200 Depreciation Expense 16,800 A/P 35,700 9,200 Salary/Wages Payable 27.000 18,100 8.900 Other Opex 49,600 Accrued Liabilities 21.200 23.900 (2.700) Current Liabilities 83,900 Operating Profit $ 109,000 68,500 Long Term Debt 65,000 27,000 38,000 Interest Expense 24,800 Total Liabilities 148,900 95,500 Earnings Before Taxes Common Stock 88.000 64,400 23,600 $ 84,200 Retained Earnings 12,300 19,200 (6,900) Tax Expense 28,700 Total Shareholders' Equity 100,300 83,600 Total SE and Liabilities 249,200 179,100 Net Income $ 55,500 179.100 26,500 1. Calculate Cash Flow from Operations using the Indirect Method: 2. Assume no PP&E was sold during the period. Calculate purchases of PP&E: 3. Did the firm pay a dividend during the period? If so, how much