Assume that a machine shep acquires $680,000 of fxed assets with a uselul ife of 4 years and no rosidual valve. The shop uses staight-ine depreciabon. The compary judpes the shop imanager based on incame in relation to these fxed assets. Acinual net income, after deducting depreciation, is $70,000. Assume that tares, and all expenses except depreciation, are on a cash basis Devidends equal net incores. Thus, cash in the amount of the depreciation charge will sceumutase each yea. The plant managers persomance is judged in relabon to fixed assets because all curent assets, inctuding cash, ave considered under central-corppany control. Assume funrealisicaly) that any cash ascumulatod remains ide. lgnere taxes. Fiead the recureinenta Begin by selecting the formula you will need to calculate return on assets. income Avorage assets - Return co assets Requirement 1. Prepare a comparative tabulation of the planfs male of rotum and the corrpary/s overal rate of rebum basod on (a) gross asseth and (b) net bosk vale of assets Begin to complete the comparative tabulation by showing the plant a performance (Completo at answer bowes. Enter the nite of retame as percentagen reunded to the oesest tecth of a percent Requirements 1. Prepare a comparative tabulation of the plant's rate of return and the company's overall rate of return based on a. gross (i.e., original cost) assets. b. net book value of assets. 2. Evaluate the relative merits of gross assets and net book value of assets as investment bases