Chapter 13, Problem 12DQ

To determine

Equity: Each company needs finance to run the business. Equity is one of the method through which the company raise the capital.

Assets: Assets are the resources that a company needs to run the business. An assets is economic resources of the company.
Financial statement analysis: To interpret the financial statement, financial statement analysis is required. Financial statement analysis helps in acquiring information which is required by the parties, who uses these types of financial information. Various things included in financial analysis are, profit and loss account, balance sheet and cash flow statement.

To explain: Difference in return on total assets and equity.