Question: Lofty Inns reported these figures for 2013 and 2012 (in millions): Requirements 1. Use DuPont analysis to compute Loftys return on assets and return on

Lofty Inns reported these figures for 2013 and 2012 (in millions):

Lofty Inns reported these figures for 2013 and 2012 (in

Requirements
1. Use DuPont analysis to compute Lofty€™s 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 27,000 $18,400 389 1,52516,523 3,008)(9,300) 43 Income statement Net sales Operating income Net income S30,500 $28,200 4,0223,819 2,100 1,546

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