Company X failed to record (accrue) $5,000,000 of vendor invoices and warranty liability at year-end. With this omission, the company's summary financial statements were stated as follows:

The system is saying my 12.5% RoE is incorrect, but I do not know why that is. My calculation is:

Net Income / 2-Point Avg. SE, so $5M/(($45M+$35M)/2) = 12.5%

Company X failed to record (accrue) $5,000,000 of vendor invoices and warranty liability at year-end. With this omission, the company's summary financial statements were stated as follows ummarized Income Statement Sales All Cost (incl. Interest &Taxes) $40,000,000 Net Income Summarized Balance Sheet $50,000,000 $10,000,000 This Yea Last Year Assets All Current Assets combined All Long-Term Assets combined $000000 $40,000 000 Total Assets Liabilities & Stockholders Equity All Current Liabilities combined $30,000,000 $25,000,000 All Long-Term Liabilities combined $25,000,000 $20,000,000 Stockholders Equity Total Liabilities & Equity Answer the following questions: $50,000,000 $40,000,000 $100,000,000 $80,000,000 $45,000,000 S35.000,000 $100,000,000 S80,000,000 Current Ratio per Company Statements? 1.67 Current Ratio if Statements Fixed This Error? 1.43 Would the Current Ratio Be Better or Worse? Worse ROI per Company Statements? 11.1% ROI if Statements Fixed This Error? 5.6% Would the ROl be Better or Worse? Worse ROE per Company Statements? 25.0% ROE if Statements Fixed This Error? 12.5% Would the ROE be Better or Worse? Note: Display Current Ratio in the following format only x.xx (in other words, go to 2 decimal points) Display Rol and ROE responses in the following format only-XX% (in other words, go to one decimal point and include the percentage sign) Display the BetterWorse responses only using one of the following 2 choices: Better Worse