International Paper Company is one of the world's largest manufacturers of paper and wood products. The following information (in millions) was disclosed on recent two-year comparative income statements:

*Before discontinued operations, extraordinary items, and cumulative effect from change in accounting principle.
Information (in millions) from three-year comparative balance sheets is as follows:

a. Determine the rate earned on total assets for 2003 and 2004. Round to two decimal places.
b. Determine the rate earned on stockholders' equity, using the leverage formula, for 2003 and 2004. Round to two decimal places.
c. Analyze comparative ratios in (a) and (b) for the twoyears.

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2004 2003 Net income (loss)* 5(35) $302 Dec. 31, 2004 534,217 Dec. 31, 2003 Dec. 31, 2002 533,792 $35,525 Total assets Total stockholders' equity 8,254 8,237 7,374