(4 marks) b) The table below contains the reformulated financial statements of Dunderef Inc for 2017 and 2018. You are given: The summary reformulated Income Statement for each year The summary reformulated average Balance Sheet for each year. The number given for each item in each year is the average of the corresponding numbers in the opening and closing balance sheets of that year. As noted at the foot of the table, the ROE (Return on Equity) for 2017 is 15.87% and the ROE for 2018 is 17.72%. Dunderef Inc $ millions 2017 $ millions 2018 Summary Reformulated Income Statements NOPAT 77.000 105.000 Net financial expense (net of tax) 8.750 19.950 Net income 68.250 85.050 Summary Reformulated Balance Sheets (Averages) Total net operating assets 680.000 1,050.000 Net financial liabilities 250.000 570.000 Equity: Total net operating assets less net debt 430.000 480.000 Return on Equity (ROE) 0.1587 0.1772