78 Part 1 Overview 8. Comparing ROE and ROA Both ROA and ROE measure profitability. Which one is more useful for comparing two companies? Why? 9.

Calculating EFN The most recent financial statements for Bradley, Inc., are shownhere (assuming no income taxes):[ Income StatementSalesCostsNet income$5,7003,820' $1,880AssetsTotalBalance Sheet *$14,100$14,100DebtEquityTotal$ 6,300 I7,800 I$14,100 |sggpr '"9MBAssets and costs are proportional to sales. Debt and equity are not. No dividendsare paid. Next year's sales are projected to be $6,669. What is the external financing needed?SEE ATTACHMENT # 8