Common-sized Income Statements for The Upside of Love in 2018 and 2019 are: 2018 2019 Sales 100% 100% Cost of goods sold 62 62 Depreciation 13 13 EBIT 25 25 Interest paid 15 16 Taxable income 10 9 Taxes 4 5.4 Net income 6% 3.6% The common-sized or standardized income statements for The Upside of Love shows: The Upside of Love's costs are rising relatively as a proportion of sales. The Upside of Love is becoming relatively more profitable. The Upside of Love's depreciation expense is relatively increasing. The Upside of Love is paying relatively more in taxes over time. Balance Sheets for The Upside of Love ($ in millions) for 2018 & 2019 are: 2018 2019 2018 2019 Current Assets 768 648 Current liabilities 1,536 1,183 Fixed Assets 5,228 5,354 Long term debt 1,804 2,077 Total Assets 5,996 6,002 Owner's Equity 2,656 2,740 Liabilities & Equity 5,996 6,002 If The Upside of Love earned a Net Income of $42 million in 2019, what is The Upside of Love's 2019 ROE? The Upside of Love's ROE is between 1% and 2%. The Upside of Love's ROE is greater than 2% The Upside of Love's ROE is negative in 2019. The Upside of Love's ROE is positive, but less than 1%. Dick's Pizza of West Bend has a profit margin of 10 percent, total asset turnover of 1.2, and ROE of 14% percent. What is Dick's Pizza's Equity Multiplier (EM) ? PIZZA DICKSPRZARIN EM = 1.1133 EM = 1.8734 EM = 1.1667 EM = 1.7600