A company is ROA is much lower than RNOA, what cause this difference?

1. A company in 2019 Return on Assets (ROA) is 17.82% and its Return on Net Operating Assets (RNOA) is 50.9%. Briefly discuss what could be driving the difference in these two ratios?

please be logical

2.Which of the following is not a correct statement about the reformulation of the financial statements?

a. All of the financial statements will still balance and articulate after the reformulation.

b. The focus of the reformulation is on the common shareholders; thus, activities with non-controlling interests and/or preferred shareholders need to be re-classified.

c. Activities in the line items “other assets” and “other liabilities” could be operating, financing, or a combination of both.d. The classification between short-term and long-term determines whether the item is an operating or financing activity.

3.what is the purpose of reformulating the financial statements? (just several sentences enough)

4.Which category would the line item “Net Interest Expense (Income)” be included in as part of the reformulated financial statements?

a. Net Financing Expense (NFE)

b. Net Operating Profit After Tax (NOPAT)

c. Transactions with Shareholders

d. Net Financial Assets – NFA or (Net Financial Liabilities – NFL

Which of the following would not be a driver (part of) the calculation for RNOA (Return on Net Operating Assets?

a. Common Shareholders’ Equity

b. Current and prior year Property, Plant and Equipment.

c. Net Sales

d. Cost of Goods Sold

Which of the following would not be a driver (part of) the calculation for ROCE (Return on Common Shareholders’ Equity)?

a. Net Income

b. Net Interest Expense (Income)

c. Current and prior year common stock balances

d. Comprehensive Income