Easton Company included the following items in its financial statements for 2016, the current year (amounts in millions):
Payment of long-term debt..............................................$ 17,055
Proceeds from issuance of common stock.................................8,425
Total liabilities:
Current year-end............................................................32,311
Preceding year-end.........................................................38,025
Total stockholders' equity:
Current year-end............................................................23,483
Preceding year-end........................................................14,039
Borrowings..................................................................6,500
Dividends paid..............................................................$ 195
Net sales:
Current year...............................................................60,000
Preceding year.............................................................67,000
Net income:
Current year.................................................................6,488
Preceding year..............................................................2,003
Operating income:
Current year...............................................................10,054
Preceding year...............................................................4,012
Requirements
1. Use DuPont Analysis to compute Easton's return on assets and return on common equity during 2016 (the current year). Easton 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?