Question: 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
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) Current Year Prior Year Net sales 1,172,087 $1,172,087 Net Income 53,796 23,735 Average shareholders' equity 119,445 134,536 Average total assets 385, 143 388,728 Required: 1. Compute ROA for the current and prior years. (Round 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? Increase Decrease
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