Lofty Inns reported these figures for 2014 and 2013 (in millions):

Requirements
1. Use DuPont analysis to compute Lofty's return on assets and return on equity for 2014.
2. Do these rates of return suggest strength or weakness? Give your reason.
3. What additional information do you need to make the decision in requirement 2?

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2014 2013 Balance sheet Total assets Common share capital Retained earnings Other shareholders' equity $27,000 43 11,525 (3,008) $18,400 389 16,523 9,300) Income statement Net sales Operating income Net income S30,500 4,022 2,100 $28,200 3,819 1,546