Lennox International’s 2017 Form 10-K reported the following items:

• 2017 sales were $3,839.6 million.

• 2017 net income was $305.7 million.

• 2017 interest expense was $30.6 million. (Assume the marginal tax rate related to interest expense was 40%.)

• Total assets were $1,760.3 million at December 31, 2016, and $1,891.5 million at December 31, 2017.

• Current assets were $1,005.9 million at December 31, 2016, and $1,137.3 million at December 31, 2017.

• In 2017, income tax expense was $31.8 million higher due to the one-time effect of the Tax Cuts and Jobs Act.

Required:

1. Calculate ROA and current and long-term turnover ratios for 2017.

2. Calculate ROA and current and long-term turnover ratios for 2017, adjusted to eliminate the one-time effect of the Tax Cuts and Jobs Act on net income.

3. Which of the above approaches provides a better comparison to the results from the previous years and why?