Computing return on assets and return on equity [5-10 min]Godhi’s 2012 financial statement...

Computing return on assets and return on equity [5-10 min]

Godhi’s 2012 financial statements reported the following items—with 2011 figures given for comparison:

Requirement

1. Compute Godhi’s rate of return on total assets and rate of return on common stockholders’ equity for 2012. Do these rates of return look high or low?