Income Statement

CFM Majestic Inc.

Years 1 & 2 ($000,000s)
Year 1 Year 2
Sales 381.9 416.3
COGS 244.9 278.9
SG&A 59.7 63.8
Depreciation 13.8 15.4
R & D 5.3 4.3
EBIT 58.2 53.9
Interest Expense 7.3 7.9
Earnings before Income Tax 50.9 46.0
Income Taxes 17.3 14.8
Net Income 33.6 31.2

Referring to the CFM Majestic financial statements, did ROE rise or fall from Year 1 to Year 2?
A) Fall
B) Rise

A