32 1-33 -40 1-40 1-40 1-42 1-43 1-49 1-52 1-53 1-55 1-56 Evaluate a company's profitability and solvency. P11.7 (LO 4), AP Writing Spahn Company manufactures backpacks. During 2025, Spahn issued bonds at 10% interest and used the cash proceeds to purchase treasury stock. The following financial information is available for Spahn Company for the years 2025 and 2024. 2025 2024 $ 9,000,000 $ 9,000,000 2,240,000 2,500,000 Sales revenue Net income A Interest expense Tax expense Dividends paid on common stock Dividends paid on preferred stock Total assets (year-end) Average total assets Total liabilities (year-end) Avg. total common stockholders' equity 500,000 670,000 890,000 300,000 11 14,500,000 15,687,500 6,000,000 9,400,000 140,000 750,000 1,026,000 300,000 16,875,000 17,763,000 3,000,000 14,100,000 Instructions a. Use the information above to calculate the following ratios for both years: (1) return on assets, (2) return on common stockholders' equity, (3) payout ratio, (4) debt to assets ratio, and (5) time