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don't have to show work Southhampton Corporation's financial statements ($ millions)... Income Statement Summary 2016 2017 Sales $1,799 $2,010 Earnings before interest & taxes (EBIT)

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Southhampton Corporation's financial statements ($ millions)... Income Statement Summary 2016 2017 Sales $1,799 $2,010 Earnings before interest & taxes (EBIT) $221 $304 Interest expense (net) (Z) (12) Income before taxes $214 $292 Income Taxes (79) (99) Net income $135 $193 Common shares outstanding (millions) 38 38 Balance Sheet Summary 2015 2016 2017 Current assets $504 $536 $654 Property, plant & equipment 1.345 1.260 1.378 Total assets $1.842 $1.796 $2032 Balance Sheet Summary 2015 2016 2017 Current assets $504 $536 $654 Property, plant & equipment 1,345 1,260 1.378 Total assets $1,849 $1,796 $2.032 Current liabilities $176 $162 $180 Long-term debt 493 370 530 Deferred taxes & other 136 127 146 Equity 1.044 1.137 1.176 Total liabilities & equity $1,849 $1.796 $2.032 22. The change in Southampton's operational performance on real assets from 2016 to 2017 was due mainly to O asset turnover ratio (ATO) tax burden ratio O interest burden ratio C profit margin (ROS) 23. Southampton's return on assets (ROA) was in 2016 and ____ in 2017. O 12.3%, 15.1% O 12.4%. 16.7% O 12.1%. 15.9% 16.2%, 159% affect on Southampton's financial performance in 2017 24. The use of debt (leverage) had versus 2016. O a mixed O no O a negative O a positive 25. Southampton's change in ROE from 2016 to 2017 was negatively impacted by the change in asset turnover ratio O profit margins O compound leverage factor O tax rate

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