Question

East Point, Inc., sells merchandise through company-owned retail stores and an Internet Website. Recent financial information for East Point is provided below (all numbers in millions).

	Year 3		Year 2
Net income	$142,200		$73,300
Interest expense	2,900		10,900
	Year 3		Year 2		Year 1
Total assets	$1,443,956		$1,373,520		$1,217,250
Total stockholders' equity	1,113,349		1,091,303		241,425

  Determine the return on total assets for East Point for the fiscal Years 2 and 3. Round your percentage answers to one decimal place.

Year 3	fill in the blank 1 %
Year 2	fill in the blank 2 %

b.  Determine the return on stockholders' equity for East Point for the fiscal Years 2 and 3. Round your percentage answers to one decimal place.

Year 3	fill in the blank 3 %
Year 2	fill in the blank 4 %

c.  For East Point, the 

return on total assetsreturn on stockholders' equity

 exceeds the 

return on total assetsreturn on stockholders' equity

 due to the 

positivenegative

 use of leverage.