uestion 2 ot yet answered Blockbuster Inc. Income Statement for year-ended Dec 31 ($000s) Marked out of _00 Year 1 Year 2 Sales Flag question 4,969,100 5,157,600 COGS 2,036,000 2,420,700 SG&A 2,390,600 2,532,400 Depreciation 279,000 246,600 Amortization of Intangibles 180,100 176,100 Operating Income (Loss) 83,400 -218,200 Interest Expense 116,500 78,200 Income Before Tax 33,100 -296,400 Income Tax Expense 45,400 -56,100 Net Income -78,500 -240,300 Referring to the Blockbuster financial statements, what is the most important underlying reason for the change in ROE? O Select one: O a. Increase in cost of goods sold caused a big drop in gross margin b. Increase in sales resulted in an increase in product returns which caused inventory turnover to decline c. Decrease in cost of goods sold d. Decrease in debt e. Increase in debt caused the debt/equity ratio to rise O