Accounting Problem. Profitability ratios

The following selected data were taken from the financial statements of Vidahill Inc. for December $31,20$Y$7,20$Y$6,$ and $20$Y$5$:

The $20Y7$ net income was $$31,230,$ and the $20Y6$ net income was $$21,620.$ No dividends on common stock were declared between $20Y5$ and $20Y7.$

Preferred dividends were declared and paid in full in $20Y6$ and $20Y7.$

a$.$ Determine the return on total assets, the return on stockholders' equity, and the return on common stockholders' equity for the years $20Y6$ and

$20Y7.$ When required, round your answers to one decimal place.

$20Y7$

b$.$ The profitability ratios indicate that the company's profitability has

the return on stockholders' equity in both years, there must be

I. Since the return on assets is

leverage from the use of debt.