For the fiscal year 2022, the income statements for Ford Motor Company and Toyota Motor Corporation are provided:

($ millions)	Ford Motor Company	Toyota Motor Corporation
Net sales	$150,780	$275,370
Cost of sales	124,128	216,895
Gross profit	26,652	58,475
Operating expenses:
Selling, general, and administrative (SG&A)	14,580	18,890
Research and development (R&D)	7,150	9,760
Operating income	4,922	29,825
Interest and other (income) expense	2,415	4,275
Interest and investment income	(1,075)	(1,825)
Earnings before provision for income taxes	3,582	27,375
Provision for income taxes	895	6,844
Net earnings	$2,687	$20,531

Required:

1. Calculate the return on equity (ROE), return on assets (ROA), and return on financial leverage (ROFL) for each company in fiscal year 2022. Assume a tax rate of 25%.
2. Disaggregate the ROA into profit margin (PM) and asset turnover (AT) components. Identify which factor drives the ROA for each company.
3. Analyze the trend in SG&A expenses over the past five years. How does it affect each company’s operational efficiency?
4. Evaluate the current ratio and quick ratio for Ford Motor Company and Toyota Motor Corporation. What does it reveal about their short-term liquidity?
5. Compare the research and development (R&D) expenses as a percentage of sales for Ford Motor Company and Toyota Motor Corporation. What insights can be drawn about their investment in innovation?