2018 2017 Assets Cash $ 550 $ 500 110 100 Short-term investments Accounts receivable 2,750 2,500 Inventories 1,650 1,500 Total current assets $5,060 $4,600 Net plant and equipment 3,850 3,500 Total assets $8,910 $8,100 Liabilities and Equity Accounts payable $1,100 $1,000 Accruals 550 500 384 200 Notes payable Total current liabilities $2,034 $1,700 Long-term debt 1,100 1,000 Total liabilities $3,134 $2,700 Common stock 4,312 4,400 Retained earnings 1,464 1,000 $5,776 $5 400 Total common equity Total liabilities and equity $8,910 $8,100 2018 2017 Sales $11,000 $10,000 Operating costs excluding depreciation 9,360 8,500 Depreciation and amortization 380 360 Earnings before interest and taxes $ 1,260 $ 1,140 Less interest 120 100 Pre-tax income S 1140 $ 1,040 Taxes (40%) 456 Net Income ava laole to common stockholders $ 684 $ 624 Common Ovidends $ 220 $ 200 Assume that there are 100 million shares of common stock outstanding. The current stock price per share is $85 per share. If you need market values for other line items but they are not given above, use book values instead. a) What is the return on capital (ROC), per magic formula, for Rhodes Inc. for the year 2018? Show your calculations. 3 b) L What is the eamings yield @Y), per magic formula, for Rhodes Inc. for the year 2018? Show your calculations