Industry averages
Return on equity (ROE)	12.9%

Assume EAC reports under the ASPE framework. Using ROE for the analysis, which of the following statements regarding EACs change in profitability from the previous year is true?

Question 11 options:

a)	EACs profitability has improved, and the organization is more efficient at generating income from its equity base.

b)	EACs profitability has deteriorated, but the organization is more efficient at generating income from its equity base.

c)	EACs profitability has deteriorated, and the organization is less efficient at generating income from its equity base.

d)	EACs profitability has improved, but the organization is less efficient at generating income from its equity base.

$132,500 $125,000 76,200 72,600 $ 56,300 $ 52,400 Sales Cost of goods sold Gross profit Expenses: Operating expense Depreciation expense Advertising expense Interest expense Total expenses $ 27,500 6,850 4,920 5.950 $ 45,220 $ 25,700 6,850 4,850 6,500 $ 43,900 $ 11,080 4,400 $ 6,680 $ 8,500 3,000 $ 5,500 Income before tax Income tax expense Net income Enough Already Corp. Balance sheet As at December 31, 2020 (in '000s) 2020 Current assets: Cash $ 13,290 Accounts receivable 34,500 Inventory 21.200 Total current assets $ 68,990 Property, plant, and equipment 92,300 Total assets $161.290 2019 2018 $ 10,700 $ 10,395 33,800 28,900 19.800 16.550 $ 64,300 $ 55,845 99.150 106,000 $163,450 $164,845 Current liabilities: Accounts payable Unearned revenue Current portion of long-term debt Total current liabilities Long-term liabilities Total liabilities Shareholders' equity Total liabilities and shareholders' equity $ 15,690 9,200 8.500 $ 33,390 68,000 $101,390 59.900 $161.290 $ 16,145 $ 14,155 8,900 8,400 8.500 8.500 $ 33,545 $ 31,055 76,500 85.000 $110,045 $116,055 53.405 45.790 $163,450 $161,845