1. Using the data in the table below,

1. Calculate each of the five components listed below for 2014 and 2018, and calculate the return on equity (ROE) for 2014 and 2018, using all the five components.
2. Briefly discuss the impact of the changes in asset turnover and financial leverage on the change in ROE from 2014 to 2018.

Income Statement and Balance Sheet of Adisadel Ltd.

2014 2018 $542 $979 38. 76 3 9 3 o 32 67 13 37 Income Statement Data Revenues Operating income Depreciation and amortization Interest expense Pretax income Income taxes Net income after tax Balance Sheet Data Fixed assets Total assets Working capital Total debt Total shareholders' equity $ 19 $ 30 $ 41 $ 70 245 291 123 157 $ 16 $ 0 $159 $220