Following are selected financial data in thousands of dollars for the Hunter Corporation.

2012 2011

Current Assets....... $500 $400

Fixed Assets, net...... 700 600

Total Assets........ 1,200 1,000

Current Liabilities....... 300 200

Long-term debt........ 200 200

Common equity........ 700 600

Total Liabilities& Equity... 1,200 1,000

Net Sales.......... 1,500 1,200

Total Expenses........ -1,390 -1,100

Net income.......... 110 100

a) Calculate Hunter's rate of return on total assets in 2012 and in 2011. Did the ratio improve or worsen?

b) Diagram the expanded DuPont system for Hunter for 2012. Insert the appropriate dollar amounts wherever possible.

c) Use the DuPont system to calculate the return on assets for the two years, and determine why they changed.