What is the return on equity for Year 2? Cash Accounts rec. Inventory Total Little Gorilla, Inc. Year 2 Income Statement (S in million) Sales $9,625 Less: Cost of goods sold Less: Depreciation 5,225 1,890 Earnings Before interest and taxes 2,510 850 Less: Interest paid Taxable income Less: Taxes Net income Dividends paid Addition to retained earnings Year 1 $1,455 Year 2 $260 2,460 3,975 1,405 885 Year 1 and Year 2 Balance Sheet (S in million) $5,320 $5,120 Net fixed assets 19,300 21.720 1,660 581 $1,079 Total assets $24,620 $26,840 * Accounts rec.: Accounts receivables 400 $679 Year 1 Accounts payable $1,150 2,600 Notes payable Total $3,750 $4,491 Long-term debt 7,000 7,600 Common stock 5,500 5,700 Retained earnings 8,370 9.049 Total liabilities and Equity $24,620 $26,840 Year 2 $2,863 1.628