Lofty Inns reported these figures for 2017 and 2016 (in millions):

Requirements
1. Compute Lofty's return on assets and return on equity for 2017.
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 requirement 2?

2017 2016 Balance sheet Total assets Common share capital Retained earnings Other shareholders' equity $27,000 $18,400 389 16,523 (3,008) (9,300) 43 11,525 Income statement Net sales Operating income Net income 30,500 $28,200 3,819 1,546 4,022 2,100