3. The Balance Sheet of Luxury Rug Company reported the following: LO 5 Requirement 1. Compute Luna's return on assets and return on ordinary shareholders' equity for 20x7. Do these rates of return suggest strength or weakness? Give your reason. E10-34A. (Learning Objective 6: Evaluating profitability) Littleton Company included the following items in its financial statements for 20X6, the current year (amounts in millions): LO 6 Redeemable preference share, 4%, $60 par value, redemption value $54,000; outstanding 600 shares................ $36,000 Ordinary shareholders' equity: 7,000 shares issued and outstanding ............. 77,000 Total shareholders' equity.. $113,000 Requirements 1. Compute the book value per share for an ordinary share, assuming all preference dividends are fully paid up (none in arrears). 2. Compute the book value per share of the ordinary shares, assuming that three years' cumu- lative preference dividends, including the current year, are in arrears. ) 3. The Balance Sheet of Luxury Rug Company reported the following: LO 5 Requirement 1. Compute Luna's return on assets and return on ordinary shareholders' equity for 20x7. Do these rates of return suggest strength or weakness? Give your reason. E10-34A. (Learning Objective 6: Evaluating profitability) Littleton Company included the following items in its financial statements for 20X6, the current year (amounts in millions): LO 6 Redeemable preference share, 4%, $60 par value, redemption value $54,000; outstanding 600 shares.............. $36,000 Ordinary shareholders' equity: 7,000 shares issued and outstanding .............. 77,000 Total shareholders equity. $113,000 Requirements 1. Compute the book value per share for an ordinary share, assuming all preference dividends are fully paid up (none in arrears). 2. Compute the book value per share of the ordinary shares, assuming that three years' cumu- lative preference dividends, including the current year, are in arrears. )