Your manager, Emily is undertaking an analysis of these two companies. The information for the summarized balance sheet and income statement for ABC Ltd and XYZ Ltd are presented below. ABC Ltd XYZ Ltd Balance sheet as at 30/6/21: $ $ Current assets Total assets 34,000 47,200 Non-current assets 57,000 80,800 91,000 128,000 Current liabilities 9,100 21,800 Non-current liabilities 20,100 60,000 Ordinary shareholders' equity 61,800 46,200 Total liabilities and shareholders' equity 91,000 128,000 Income statement for the year ending 30/6/21: Sales 86,500 75,800 Cost of sales 60,500 54,000 Operating expense 16,900 9,000 Interest expense 2,100 2,200 Income tax expense 4,500 2,000 Profit after income tax 2,500 8,600 Included in the analysis are the following two ratios (it is assumed that these have been calculated correctly): Return on owners' equity (ROE) Return on assets (ROA) ABC Ltd 4% 10% XYZ Ltd 19% 10% Emily made the following comment: 'I cannot understand how two companies can have the same return on assets but completely different rates of return on owners' equity'. Required: In addition to ROE and ROA ratios, use any two additional financial ratio calculations you think are necessary, explain the situation to Emily