Blockbuster Inc. Income Statement for year-ended Dec 31 ($000’s) Yea

Blockbuster Inc.

Income Statement for year-ended Dec 31 ($000’s)
Year 1 Year 2
Sales 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 change in ROA from Year 1 to Year 2?
A) -8.40%
B) -7.54%
C) -2.18%
D) 8.40%
E) 23.72%

ANSWER

C