1. East Point, Inc., sells merchandise through company-owned retail stores and an Internet Website. Recent financial information for East Point is provided below (all numbers in millions).

   	Year 3		Year 2
   Net income	$142,200		$73,300
   Interest expense	2,900		10,900
   	Year 3		Year 2		Year 1
   Total assets	$1,443,956		$1,373,520		$1,217,250
   Total stockholders' equity	1,113,349		1,091,303		241,425

   a. Determine the return on total assets for East Point for the fiscal Years 2 and 3. Round your percentage answers to one decimal place.

   Year 3	fill in the blank 1 %
   Year 2	fill in the blank 2 %

   b. Determine the return on stockholders' equity for East Point for the fiscal Years 2 and 3. Round your percentage answers to one decimal place.

   Year 3	fill in the blank 3 %
   Year 2	fill in the blank 4 %

   c. For East Point, the

   return on total assetsreturn on stockholders' equity

   exceeds the

   return on total assetsreturn on stockholders' equity

   due to the

   positivenegative

   use of leverage.