York Company included the following items in its financial statements for 2016, the current year (amounts in millions):
Payment of long-term debt.............................................$ 17,075
Proceeds from issuance of common stock................................8,415
Total liabilities:
Current year-end...........................................................32,311
Preceding year-end........................................................38,029
Total stockholders' equity:
Current year-end..........................................................23,475
Preceding year-end.......................................................14,045
Borrowings..................................................................6,590
Dividends paid.............................................................$ 205
Net sales:
Current year...............................................................80,000
Preceding year............................................................67,000
Net income:
Current year...............................................................2,379
Preceding year............................................................2,007
Operating income:
Current year...............................................................4,878
Preceding year............................................................3,998
Requirements
1. Use DuPont Analysis to compute York's return on assets and return on common equity during 2016 (the current year). York has no preferred stock outstanding.
2. Do the company's rates of return look strong or weak? Give your reason.
3. What additional information do you need to make the decision in requirement 2?