1.Crosby Company has provided the following comparative information:

20Y8

20Y7

20Y6

20Y5

20Y4

Net income

$5,571,720

$3,714,480

$2,772,000

$1,848,000

$1,400,000

Interest expense

1,052,060

891,576

768,600

610,000

500,000

Income tax expense

1,225,572

845,222

640,320

441,600

320,000

Total assets (ending balance)

29,378,491

22,598,839

17,120,333

12,588,480

10,152,000

Total stockholders' equity (ending balance)

18,706,200

13,134,480

9,420,000

6,648,000

4,800,000

Average total assets

25,988,665

19,859,586

14,854,406

11,370,240

8,676,000

Average total stockholders' equity

15,920,340

11,277,240

8,034,000

5,724,000

4,100,000

3.You have been asked to evaluate the historical performance of the company over the last five years.

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

20Y4-20Y8

Return on total assets

19%

Return on stockholders' equity

26%

Times interest earned

3.4

Ratio of liabilities to stockholders' equity

1.4

6.Required:

7.1.Determine the following for the years 20Y4 through 20Y8 for each of the graphs below. Use the amounts given above in your calculations. Round to one decimal place.

8.a.A measure of the profitability of assets, without regard to the equity of creditors and stockholders in the assets.Return on total assets: