Data from recent financial statements of SUA, which follows U.S. GAAP, and MAY, a non-U.S. company following IFRS, appears below (all data in $U.S.): SUA Income Statement 20x0 20x1 20x2 R&D expense $15,200 $16,500 $18,100 Net income 27,000 29,000 32,000 Balance Sheet R&D Assets -0- -0- -0- Total Assets 200,000 210,000 225,000 Statement of Cash Flows Cash flow from operations 13,000 14,000 16,000 MAY Income Statement 20x0 20x1 20x2 R&D expense $29,500 $32,400 $35,600 Net income 48,600 52,200 57,600 Balance Sheet R&D Assets 28,800 31,500 34,600 Total Assets 330,000 346,000 370,000 Statement of Cash Flows Cash flow from operations 25,000 27,000 31,000 Assumptions: Both companies pay zero income tax and have no interest expense. SUA follows U.S. GAAP and expenses R&D expenditures as they occur. MAY follows IFRS, which permits capitalization of certain development costs. Assume that MAYs R&D expense equals the amortization of capitalized R&D expenditures. The amortization period is three years beginning in the year the expenditure is made. a. Calculate ROA as reported for both companies for 20x2 (note: you will have to use net income in the numerator rather than NI + Interest(1-t)). Also for purposes of this problem, use ending assets rather than the average of beginning and ending assets. b. To compare the two companies, adjust the 20x2 financial data for MAY for the difference in accounting method for research and development. c. Using the result of part b, calculate ROA for MAY in 20x2 and discuss how the adjustment affects the comparison with SUA. d. To compare the two companies under the GAAP used by MAY, adjust the 20x2 financial data of SUA to capitalize research and development expense. e. Using the result of part d, calculate ROA for SUA in 20x2 and discuss how the adjustment affects the comparison with MAY.