Tootsie Roll Industries, Inc $\quad$ $\quad$ $\quad$ $\quad$

Tootsie Roll Industries, Inc. has been engaged in the manufacture and sale of candy since 1896. Its products are sold under the familiar brand names Tootsie Roll, Tootsie Roll Pops, Charms, Blow Pops, Cella's, Mason Dots and Mason Crows. Tootsie Roll operates four plants in Illinois, New York, Tennessee and Mexico. Tootsie Roll is traded on the New York Stock Exchange and maintains its head office in Chicago, Illinois.
Tootsie Roll's financial statements for Year 5 and Year 6 are provided below.
$\quad$$\quad$$\quad$$\quad$$\text {Tootsie Roll Industries Inc.}$
$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text {Balance Sheet}$
$\quad$$\quad$$\quad$$\text {As of December 31 , Year \( 6(\$ 000 \mathrm{~s}) \) }$
$\begin{array}{|ll|cc|} \hline \text { } & \text { } & \text { Year 6 }\\\hline \text { Cash \& marketable securities} &&36,758\\\hline \text { Accounts receivable} && 16,207\\ \hline\text { Inventories } && 22,927\\\hline \text {Prepaid expenses } & \text { } &2,037\\\hline \text { Total Current Assets } & \text { } &77,929\\\hline \text { Net Fixed Assets } & \text { } &32,099\\ \hline\text { Other assets} & \text { } &49,674\\\hline \text { Total Assets } & \text { } &159,702\\\hline \text {Accounts payable } & \text { } & 8,253\\\hline \text { Accrued liabilities } & \text { } & 14,298\\ \hline\text { Total Current Liabilities} & \text { } &22,551\\\hline \text {Long-term debt } & \text { } & 7,306\\\hline \text { Shareholders' Equity} & \text { } & \text { }\\ \hline\text { Common stock } & \text { } & 6,698\\\hline \text { Capital in excess of par } & \text { } &50,820\\\hline \text { Retained earnings } & \text { } &72,327\\ \hline\text { Total Shareholders' Equity} & \text { } &129,845\\\hline \text { Total Liabilities \& Equity } & \text { } &159,702\\\hline \end{array}$


-Tootsie Roll Industries Inc. Income Statement
As of December 31, Year 6 ($000s)
$$\begin{array} { | c | c | } \hline & \text { Year 6 } \\\hline \text { Net sales } & 194,299 \\\hline \text { COGS } & 103,205 \\\hline \text { SG\&A } & 54,329 \\\hline \text { EBIT } & 36,765 \\\hline \text { Interest expense } & 612 \\\hline \text { Other income (expenses) , net } & 966 \\\hline \text { Income before income taxes } & 37,119 \\\hline \text { Income taxes } & 14,563 \\\hline \text { Net Income } & 22,556 \\\hline \text { Total Cash dividends } & 12,316 \\\hline \text { Shares Outstanding } & 9,645 \\\hline \text { Average price per share (4th Q) } & \$ 36,50 \\\hline\end{array}$$ Selected Financial Ratios
$$\begin{array} { | c | c | c | } \hline & \text { Year 6 } & \text { Industry Avg } \\\hline \text { Net Profit Margin } & & 8.2 \% \\\hline \text { Total Asset Turnover } & & 1.64 \\\hline \text { ROA } & & 13.4 \% \\\hline \text { Equity Multiplier } & & 1.42 \\\hline \text { ROE } & & 19 \% \\\hline\end{array}$$ Referring to the financial statements for Tootsie Roll, what is the difference between the Industry and Tootsie for return on assets (ROA) ? (Tootsie - Industry)

A) -0.70%
B) 0.72%
C) 1.72%
D) 7.00%
E) 14.00%