2017 2016 GM Corporation ($ in millions) BALANCE SHEETS ASSETS Cash & marketable securities Accounts receivable Inventories Total current assets Net fixed assets Total assets $40,000 260,000 500,000 800,000 400,000 $1,200,000 $50,000 200,000 450,000 700,000 300,000 $1,000,000 LIABILITIES & EQUITY Accounts payable Bank loan Accruals Total current liabilities Long-term debt Other liabilities Common stock Retained earnings Total liabilities & equ $170,000 90,000 70,000 330,000 400,000 0 350,000 120,000 $,1200,000 $130,000 90,000 50,000 270,000 300,000 0 350,000 80,000 $1,000,000 INCOME STATEMENTS 2017 $1,500,000 900,000 600,000 2016 $1,300,000 780,000 520,000 Sales Cost of goods sold Gross profit Operating expenses: Selling general & admin, Marketing Depreciation Interest Earnings before taxes Income taxes Net income 150,000 150,000 53,000 57,000 190,000 76,000 $114,000 150,000 130,000 40,000 45,000 155,000 62,000 $93,000 Which of the following mainly explains how financial performance differed between 2017 and 2016? 2017's ROE rose because of a rising net profit margin and a smaller use of debt. 2017's ROE rose because of a lower total asset turnover and a smaller use of debt. 2017's ROE rose because of a higher total asset turnover and a greater use of debt. 2017's ROE rose because of a rising net profit margin and a greater use of debt