Little Gonilla, Inc. Year 2 Income Statement (s in million) Sales $9,625 Less: Cost of goods sold 5,225 Less: Depreciation 1.890 Earnings Before interest and taxes 2,510 Less: Interest paid 850 Taxable income 1,660 Less: Taxes 581 Net income $1.079 Dividends paid 400 Addition to retained earnings S679 Year I and Year 2 Balance Sheet (S in million) Year 1 Year 2 Yearl Year 2 Cash $1,455 S260 Accounts payable $1,150 $2,863 Accounts rec. 2,460 3,975 Notes payable 2.600 1.628 Inventory 1.405 885 Total $3,750 $4,491 Total $5,320 $5,120 Long-term debt 7.000 7.600 Net fixed assets 19,300 21.720 Common stock 5,500 5.700 Retained earnings 8.370 9049 Total liabilities Total assets $24.620 $26.840 and Equity $24.620 $26.840 * Accounts rec.: Accounts receivables What is the return on assets for Year 2? A) 7.8% B) 7.3% C) 4.0% D) 4.4%