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Franklin Corp. and Washburn Corp. operate in the same industry and are direct competitors. Summary financial information is below. As you can see from the

image text in transcribed Franklin Corp. and Washburn Corp. operate in the same industry and are direct competitors. Summary financial information is below. As you can see from the data, the two companies generated the same income. From the ratio analysis, we see that Washburn's ROE is much higher than Franklin's, while ROA is similar for the two companies. Explain how a company can report a much higher ROE than its competitor, but only slightly higher ROA. [Input your response below. Suggested length of 4-6 sentences.]

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