Question: Luna Inns reported these figures for 2011 and 2010 (in millions): Requirement 1. Compute Lunas return on assets and return on common stockholders equity for

Luna Inns reported these figures for 2011 and 2010 (in millions):

Requirement
1. Compute Luna€™s return on assets and return on common stockholders equity for 2011.
Do these rates of return suggest strength or weakness? Give yourreason.

2011 2010 Balance sheet Total assets stock and additional paid in capital. $15,906 $13,700 390 Retained earnings.11,522 16,490 Other equity. Income statement Operating income. Interest expens. Net income.. 4,023 3,818 269 1,549 1,525

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