RFT Corporation 2018 Statement of comprehensive income ($ in millions)
Sales	$10,850
Costs of goods sold	$8,410
Depreciation	$190
EBIT	$2,250
Interest	$165
EBT	$2,085
Taxes	$710
Net income	$1,375
Dividends paid	$300
Addition to retained earnings	$1,075

RFT Corporation Statement of financial position Years ended 2017 and 2018 ($ in millions)
	2017	2018		2017	2018
Cash	$980	$960	Accounts payable	$950	$730
Accounts rec.	$950	$880	Notes payable	$40	$150
Inventory	$2,120	$1,750	Total	$990	$880
Total	$5,050	$3,590	Long-term debt	$2,225	$100
Fixed assets	$1,700	$2,540	Common stock	$2,030	$3,570
			Retained earnings	$505	$1,580
Total assets	$5,750	$6,130	Total liabilities and Owner's equity	$5,750	$6,130

The industry in which RTF Corporation operates has an industry average of 21% for earnings before taxes. In 2018 is RTF outperforming or underperforming the industry and why?

		Outperforming because RTF has an EBT of 21%.
		Underperforming because RTF has an EBT of 19%.
		Underperforming because RTF has an EBT of 20%.
		Performing in line with the industry at 21%.
		Outperforming because RTF has an EBT of 19%.