Woldenga Equipment Inc. reported the figures shown below for 2017 and 2016:

Compute the rate of return on total assets (ROA) and the rate of return on common shareholders' equity (ROE) for 2017. Do these rates of return suggest strength or weakness? Give your reasons.

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2017 2016 Income statement: Interest expense Net income 5,200 3,250 3,700 5,200 Balance sheet: Total assets Preferred shares, $1.15, 105,000 95,000 200 shares issued and outstanding Common shareholders' equity Total shareholders' equity 1,000 46,700 47,700 1,000 43,000 44,000