Chapter 5 (1) Using the following information from a balance sheet and an income statement, compute the return on assets. The previous year's total assets were $100,000 and stockholders' equity was $70,000. Total Assets Total Liabilities Total Stockholders' Equity Net Sales Cost of Goods Sold Operating Expenses Income Taxes Net Sales Cost of Goods Sold Gross Margin Operating Expenses Income before Taxes Income Taxes Net Income $120,000 30,000 90,000 130,000 70,000 40,000 5,000 Multi Step Net Income $130,000 (70,000) 60,000 (40,000) 20,000 (5,000) 15,000