20YB 20Y7 20Y6 20YS 20Y4 Net income $273,406 $367,976 $631,176 $884,000 $800,000 Interest expense 616,047 572,003 528,165 495,000 440,000 Income tax expense 31,749 53,560 106,720 160,000 200,000 Total assets (ending balance) 4,417,178 4,124,350 3,732,443 3,338,500 2,750,000 Total stockholders' equity (ending balance) 3,706,557 3,433,152 3,065,176 2,434,000 1,550,000 Average total assets 4,270,764 3,928,396 3,535,472 3,044,250 2,475,000 Average total stockholders' equity 3,569,855 3,249,164 2,749,588 1,992,000 1,150,000 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: 20Y4-20YB Return on total assets 28% Return on stockholders' equity 18% Times interest earned 2.7 Ratio of liabilities to stockholders' equity 0.4 Required: 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: a. Return on total assets: Return on Total Assets a. Return on total assets: 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 20Y8 20Y7 20Y6 20Y5 20Y4 Year Company's retum on total assets Industry return on total assets 20Y8 9% 20Y7 % 20Y6 % Return on Stockholders' Equity 20Y6 % 205 % 204 b. Return on stockholders' equity: 80.0% 70.0% 60.0% 50.0% 40.0% 30.0 % 20.0% 10.0 % 0.0% 208. 207 20Y6 205 20Y4 Times Interest Earned Ratio 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 208 207 206 205 204 Year Company's times interest eamed Industry times interest earned 208 27 Ratio of Liabl lities to Stockholders' Equity 1O 0.9 0.8 0.7 0.6 0.5 9 0.4 0.3 0.2 0.1 0.0 208 207 20Y6 205 204 Year Company's liabilities to equity Industry liabilities to equity 208