Below, you can find the comparative Financial Statement of Megasales Company (in thousands of ) for the years 20X2 and 20X1: Comparative Balance Sheet Megasales Company" 20X2 20X1 20X2 20X1 Liabilities & Stockholders' Equity Stockholders' Equity: Common Stock Assets Fixed Assets. Property, Plant and Equipment Other Assets Total Fixed Assets 56,786 48,777 55,000 21,352 78,138 60,000 22,000 82,000 6,000 11,509 6,000 15,143 76,143 66,286 Current Assets: Cash and Cash Equivalents Accounts Receivables Inventory 1,627 14,086 15.692 1,800 17,000 15 200 24,700 532 26,000 700 2,000 935 1,143 3,934 Prepaid Expenses 32,340 Total Current Assets 35,143 29,166 28,700 Preferred Stock Retained Earnings Total Stockholders' Equity Long-Term Liabilities Long-Term Debt DateT TEL Other Long-Term Liabilities Total Long-Term Liabilities Current Liabilities Short-Term Debt Accounts Payable Accrual Liabilities Advances Received Accrued Tax Payable Total Current Liabilities Total Liabilities Total Liabilities and Stockholders' Equity 3,950 5,810 4,100 5,200 380 2,173 1,614 1,370 12,300 15,025 44,191 41,000 Total Assets 110,477 117,143 110,477 117,143 The reported Income Statement for 20X2 and 20X1 is the following (in thousands of ): Comparative Income Statement of Megasales Company 20X2 Sales 103,683 Cost of Goods (72,070) Gross Margin 31,613 Research and Development (2,991) General and Administrative Expenses (6,021) Operating Expenses (11.012) Operating Income 20,601 Interest Expense (3,578) Income Before Taxes 17,023 Provision for Taxes L (4,579) Net Income I 12,444 20X1 113,127 (88,975) 24,152 (1,438) (13,089) (14,527) 9,625 (2,434) 7,191 (1,991) 5,200 Moreover, the table below summarizes some necessary additional information for the years under examination: Additional Information (amounts in thousands of ) Preferred Dividends 20X2 40 Preferred Dividends 20X1 0 Total Assets 20X0 132,372 Total Stockholders' Equity 20X0 72,000 Required 1. For the years 20X2 and 20x1, conduct the DuPont Analysis and calculate the Return of Equity (ROE) for Megasales Company". (Please show the analytical computations for all components of the DuPont Analysis for the two respective years). (10%) 2. For the years 20X2 and 20X1, compute the Return of Equity (ROE) for "Megasales Company". Analyze and interpret your results for the two years under examination. (10%)