Part B The following is the extract of the financial statement information of Zarra Co.: Income statement 2015 2014 RM'000 4,500 250 Sales Operating profit Interest expense Profit before taxation Income tax expense Net income RM'000 3,200 120 20 100 30 70 250 100 150 Balance Sheet Non-current assets Working capital Total liabilities Total shareholders' equity 300 450 220 320 100 440 750 LWYMMN 5 16 Required: a) Caiculate return on common equity (ROCE) and return on net operating assets (RNOA) for year 2015 and 2014 using end-of-year values for computation requiring an average (assume non-current assets and working capital are operating and a 50% tax rate). (9 marks) b) Based on the result above, comment on the company's use of leverage. (4 marks)