Analyzing the Growth in Shareholders Equity (Easy) The following numbers were calculated from the financial statements for a firm for 2012 and 2011:

(2012) (2011)

Return on common equity (ROCE) 15.2% 13.3%

Return on net operating assets (RNOA) 11.28% 12.75%

Sales (millions) $ 16754 $ 11035

Average net operating assets (millions) $6981 $4414

Average net financial obligations (millions) $2225 $ 241

Average common equity (millions) $4756 $ 4,173

Explain to what extent the change in common equity from 2011 to 2012 is due to sales growth, net assets required to support sales, and borrowing.