Woldenga Equipment Inc. reported the figures shown below for 2014 and 2013.

                    ____________________________________2014                2013

Income statement:

Interest expense…………………............………….$ 5,200…….$ 3,700

Net income……………………………..............……...3,250…......……5,200

Balance sheet:

Total assets……………………………….................105,000……...95,000

Preferred shares, $1.15,

200 shares issued and outstanding…………...1,000……….1,000

Common shareholders’ equity……………....46,700……...43,000

Total shareholders’ equity…………………...47,700……...44,000

Compute the rate of return on total assets (ROA) and the rate of return on common shareholders’ equity (ROE) for 2014. Do these rates of return suggest strength or weakness? Give your reasons.