2 Return on equity (ROE) Net income/ Average Equity (a) What is the equation to calculate equity? (b) Which average is used to calculate average equity (simple average or weighted average)? (c) What is the equation to calculate the average that you selected in (b) above? (d) If given the following for the year 2018: Net income $70,000. Total assets= $100,000, Total liabilities- $60,000. While for year 2017: Total assets- $150,000. Total liabilities = $90,000. Please show the following calculations: (1) Equity for 2018 and 2017 (2) ROE for 2018 Use the editor to format your