=+PR 17-5B Solvency and profitability trend analysis objs. 2, 3 __________ __________ __________ __________ Chapter 17 Financial Statement Analysis 813 You have been asked to evaluate the historical performance of the company over the last five years.

Selected industry ratios have remained relatively steady at the following levels for the last five years:

2006–2010 Rate earned on total assets 12%

Rate earned on stockholders’ equity 18%

Number of times interest charges earned 2.8 Ratio of liabilities to stockholders’ equity 1.6 Instructions