Question 1 (1 point) ROE is equal to net income divided by average total assets Income Statement Consider financial statements for two companies, A and B Perform financial analysis of these two companies and compare them via calculation of ROE. ROA and ROCE. Company A 12/26/2015 Company B 12/27/2014 Company A 12/26/2015 55,355,000 20,676,000 34,679,000 Company B 12/27/2014 55,870,000 20.261,000 35,609,000 15,308,000 10,005.000 6,823,000 5,167,000 3,053,000 40,356,000 7,851.000 31,858,000 11,332,000 3,933,000 2,561,000 11.493.000 6,385.000 4.273,000 3,018,000 27,730,000 9,120,000 33,238,000 10.881.000 4,446,000 12, 128,000 7.930,000 354,000 265,000 20,677,000 14.002,000 11.537.000 8.136,000 295.000 294,000 20,262,000 15,347,000 7.735,000 6,505,000 103,065,000 91,900,000 All numbers in thousands Period Ending Total Revenue Cost of Revenue Gross Profit Operating Expenses Research Development Selling General and Administrative Non Recurring Others Total Operating Expenses Operating Income or Loss Income from Continuing Operations Total Other Income/Expenses Net Earnings Before Interest and Taxes Interest Expense Income Before Tax Income Tax Expense Minority Interest Net Income From Continuing Ops Non-recurring Events Discontinued Operations Extraordinary Items Effect Of Accounting Changes Other Items Net Income Preferred Stock And Other Adjustments 14.212.000 Balance Sheet Al numbers in thousands Period Ending Current Assets Cash And Cash Equivalents Short Term Investments Net Receivables Inventory Other Current Assets Total Current Assets Long Term Investments Property Plant and Equipment Goodwill Intangible Assets Accumulated Amortization Other Assets Deferred Long Term Asset Charges Total Assets Current Liabilities Accounts Payable ShortCurrent Long Term Debt Other Current Liabilities Total Current Liabilities Long Term Debt Other Liabilities Deterred Long Term Liability Charges Minority interest Negative Goodwill Total Liabilities Stockholders' Equity Misc. Stocks Options Warrants Redeemable Preferred Stock Preferred Stock Common Stock Retained Earnings Treasury Stock Capital Surplus Other Stockholder Equity Total Stockholder Equity 15,801.000 10,845,000 2.634,000 2,188,000 15,667,000 20,036,000 2,841,000 2,539,000 12,210,000 1,598,000 2,205,000 16,011,000 12,059,000 3,278,000 3,775,000 14,212,000 2.792.000 15,801 000 4,097,000 11,735,000 12,115,000 41.083,000 35,123,000 897.000 912,000 23,411,000 37,614,000 21,781,000 33 418.000 11,420,000 11,704,000 60.000 61,085,000 666,000 55.865.000 Net Income Applicable To Common Shares 11,420,000 11,704,000 O a True O False