Business
Business, 05.03.2021 19:30, mathk3

Company included the following items in its financial statements for ​, the current year​ (amounts in​ millions): Payment of long-term debt $17,075 Dividends paid $205
Proceeds from issuance of common 8,415 Net sales:
Total liabilities: Current year 80,000
Current year-end 32,311 Preceding year 67,000
Preceding year-end 38,029 Net income:
Total stockholders' equity: Current year 2,379
Current year-end 23,475 Preceding year 2,007
Preceding year-end 14,045 Operating income:
Borrowings 6,590 Current year 4,878
Preceding year 3,998

Required:
a. Use DuPont Analysis to compute York's return on assets and return on common equity during 2016 (the current year). York has no preferred stock outstanding.
b. Do the company's rates of return look strong or weak? Give your reason.
c. What additional information do you need to make the decision in requirement b?

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