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Question 21 (6 points) Total Revenue =$440,000 Total Cash Expense =$243,000 Net Cash Income =$197,000 Depreciation =$100,000 Interest expense =$35,000 Gains from sales of capital

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Question 21 (6 points) Total Revenue =$440,000 Total Cash Expense =$243,000 Net Cash Income =$197,000 Depreciation =$100,000 Interest expense =$35,000 Gains from sales of capital assets =$16,000 Average equity =$750,000 Average asset value =$1,350,000 Opportunity cost of labor and management =$40,000 Opportunity cost of capital =$15,000 Family living expenses =$25,000 Using the answers from the previous question, calculate Return on Assets and Return on Equity. Show work for partial credit. (hint: Use the Income statement assignment as a guide)

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