purchase of a new machine affect the income statement? 9. Use the following information to compule values for each of the following items. Income from operations Net farm income Interest expense Average asset value Average equity value Gross revenue $ 120,000 $ 100,000 20,000 1,000,000 800,000 $ 400,000 Opportunity cost of labor Opportunity cost of management Opportunity interest rate Family living expenses Income and Social Security taxes $45.000 25.000 55 50.000 $22.000 1. Rate of return on assets b. Rate of return on equity c. Operating profit margin ratio d. Change in equity S. e. Return to management $