Question: Lexington Inns reported these figures for 2013 and 2012 (in millions): Requirements 1. Use DuPont analysis to compute Lexingtons return on assets and return on
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Requirements
1. Use DuPont analysis to compute Lexingtons return on assets and return on common stockholders equity for 2013.
2. Do these rates of return suggest strength or weakness? Give your reason.
3. What additional information do you need to make the decision in(2)?
2013 2012 Balance sheet Total assets Common stock and additional paid-in capital Retained earnings Other stockholders' equity $15,702 80 11,519 (3,005) $13,728 680 16,499 (9,095) Income statement Net sales Operating income Net income $25,500$27,500 3,813 1,550 4,025
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Req 1 Profit Net income 1500 59 margin Net sales 25500 Asset Net sales 25500 25500 17... View full answer
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