Question 17 1.5 Points By looking at the above UBT table, calculate the OROA and justify the result if the industry norm for OROA is 19 %: (full evaluation is required) Use the editor to format your answer = x Test Ratio problem: you can find below the financial statements of UBT, Inc. UBT Company Balance Sheet Assets: Cash and marketable securities Accounts receivable Inventories Prepaid expenses Total current assets Fixed assets 2,700,000 Less: accum. depr. (1,087,500) Net fixed assets Total assets $ 300,000 1,215,000 1,747,500 24,000 3,286,500 1,612,500 $4,899,000 Liabilities: Accounts payable Notes payable Accrued taxes Total current liabilities Long-term debt Owner's equity Total liabilities and owner's equity $ 240,000 825,000 42,000 $1,107,000 975,000 2,817,000 $4,899,000 Net sales (all credit) $6,375,000 Net sales (all credit) Less: Cost of goods sold Selling and administrative expense Depreciation expense Interest expense Earnings before taxes Income taxes Net income $6,375,000 (4,312,500) (1,387,500) (135,000) (127,000) $ 412,500 (225,000) $ 187,500