E5-18 (Algo) Analyzing and Evaluating Return on Assets from a Security Analyst's Perspective L05-4 Papa Joe's is one of the fastest-growing pizza delivery and carry-out restaurant chains in the country. Presented here are selected earlier years' Income statement and balance sheet amounts (dollars in thousands). Net sales Net income Average shareholders' equity Average total assets Current Year 1,252,087 53,796 126,445 398,143 Prior Year $ 1,252,087 29,735 129,536 386,728 Required: 1. Compute ROA for the current and prior years. (Roun your answers to 3 decimal places.) Current Year Prior Year ROA 2. Would security analysts more likely Increase or decrease their estimates of share value on the basis of this change? O Increase O Decrease