1. Skywalker Company compares its ratios to the average of its three largest rival competitors: Vader Corp, Boba Corp, and Palpatine Corp. Currently, Skywalkers CFO is concerned it is not meeting its competitors average related to its Return on Assets. Using the information below, determine Skywalker Companys Return on Assets and its position related to its competitors:

Skywalker Company

• Total Assets 2019 = $700,000
• Total Assets 2020 = $800,000
• Sales in 2020 = $3,750,000
• Net Income in 2020 = $120,000

Competitors Return on Asset Ratios for 2020:

• Vader Corporation = 0.18 or 18.00%
• Boba Corporation = 0.13 or 13.00%
• Palpatine Corporation = 0.14 or 14.00%

A. ROA = 0.16 or 16%; Greater than Competitors Average

B. ROA = 0.16 or 16%; Less than Competitors Average

C. ROA = 0.20 or 20%; Greater than Competitors Average

D. ROA = 0.15 or 15%; Less than Competitors Average

E. ROA = 0.15 or 15%; Equal to Competitors Average