Please help me to answer this number 2 question in my assignment chapter 12, thank you.

Christine Wilde is considering opening a frozen yogourt store. One option is to purchase an existing independent store that is although smaller than the average store, is an above average performer for the industry. Mark has provided the financial data shown below for his store. Christine has approached you to help her decide. You find the following information on of similar outlets: - The average store is 1,580 square feet (147 square metres) and contains 6 yogourt machines, a topping bar, and seating for 20. - Sales average $412,000 for stores in their first year and $655,000 for a mature store. It usually takes three years for a store to mature. - Gross margins on start-up average 70% and normally increase to 75% for established locations. - Operating costs start at 50% and drop to 43% of sales for mature stores as the fixed costs are spread out. - The initial investment for a 1,580-square-foot store is $358,000 for machines, franchise fees, and other capital costs, plus $54,000 for liquid assets including inventory. - Franchisees are expected to invest two-thirds of the required investment in equity and arrange to borrow the remaining onethird. You recall that in retail, a key statistic is sales per square foot, and you make a note to yourself to factor the different store sizes into your analysis. Mark is asking $412,000 for his store and explained to Christine: "I am offering you a great deal by just asking for the carrying value of all the hard work getting the store established; it should be easy for you now." Use financial statement analysis to evaluate the performance of Mark's store compared with the average Yogourt Yogourt franchise. Mark's store has well relative to the average Yogurt Yogurt franchise. eTextbook and Media Based on Mark's most recent financial results and Christine's investment if, she pays Mark's asking price, what would be her ROA and ROE compared with a start-up franchise? (Round answers to 1 decimal place, e.g. 15.7. ) eTextbook and Media Do you recommend Christine purchase Mark's store