From the balance sheet:

Cash.............................................................$ 30,000
Accountsreceivable....................................... 150,000
Inventory....................................................... 200,000
Plant assets(net of acc.deprec.)..................... 500,000
Currentliabilities............................................ 150,000
Total stockholdersequity................................. 300,000
Totalassets..................................................... 1,000,000
From the income statement:
netsales.............................................................. $ 1,500,000
Cost of goodssold................................................. 1,080,000
Operatingexpenses................................................ 315,000
interestexpense......................................................... 84,000
income taxexpense.................................................... 6,000
Netincome............................................................. 15,000
From the statement of cash flows:
Net cash provided byoperating............................... $ 40,000
(including interest paid of $79,000)
net cash used in investingactivities............................. (46,000)
Financing activities:
Amountsborrowed..............................$ 50,000
repayment of amountsborrowed............ (14,000)
Dividendspaid........................................(20,000)
Net cashprovided by financing activities.......................16,000
Net increase in cash during theyear.................................... $10,000

Compute the ratios for: return on assets and return on equity, assuming the year end amounts represent the average throughout the year. Why are the returms on assets and returns on equity so different?