Income Statement CFM Majestic Inc Years 1 & 2 ($000,000s) Year 1 Ye

Income Statement
CFM Majestic Inc

Years 1 & 2 ($000,000s)
Year 1 Year 2
Sales 381.9 416.3
COGS 244.9 278.9
SG&A 59.7 63.8
Depreciation 13.8 15.4
R & D 5.3 4.3
EBIT 58.2 53.9
Interest Expense 7.3 7.9
Earnings before Income Tax 50.9 46.0
Income Taxes 17.3 14.8
Net Income 33.6 31.2

Referring to the CFM Majestic financial statements, is the change between Year 1 and Year 2 in Total Asset Turnover important in explaining the change in ROA?
A) No
B) Yes

ANSWER

A