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Addai Company has provided the following comparative information: 20Y8 20Y7 20Y6 20Y5 20Y4 Net income $1,298,000 $1,119,000 $940,300 $803,700 $681,100 Interest expense 441,300 402,800 347,900

Addai Company has provided the following comparative information:

20Y8 20Y7 20Y6 20Y5 20Y4
Net income $1,298,000 $1,119,000 $940,300 $803,700 $681,100
Interest expense 441,300 402,800 347,900 265,200 211,100
Income tax expense 415,360 313,320 263,284 208,962 163,464
Total assets (ending balance) 6,846,408 7,180,204 5,192,154 5,366,862 4,069,870
Total stockholders' equity (ending balance) 2,212,285 2,640,051 1,688,769 2,079,969 1,247,981
Average total assets 7,013,306 6,186,179 5,279,508 4,472,385 3,796,596
Average stockholders' equity 2,426,168 2,164,410 1,884,369 1,663,975 1,452,239

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:

20Y420Y8
Return on total assets 24.5%
Return on stockholders equity 50.3%
Times interest earned 4.6
Ratio of liabilities to stockholders' equity 2.1

Required:

1. Determine the following for the years 20Y4 through 20Y8. Round to one decimal place:

a. Return on total assets:

20Y8 fill in the blank 1%
20Y7 fill in the blank 2%
20Y6 fill in the blank 3%
20Y5 fill in the blank 4%
20Y4 fill in the blank 5%

b. Return on stockholders equity:

20Y8 fill in the blank 6%
20Y7 fill in the blank 7%
20Y6 fill in the blank 8%
20Y5 fill in the blank 9%
20Y4 fill in the blank 10%

c. Times interest earned:

20Y8 fill in the blank 11
20Y7 fill in the blank 12
20Y6 fill in the blank 13
20Y5 fill in the blank 14
20Y4 fill in the blank 15

d. Ratio of liabilities to stockholders' equity:

20Y8 fill in the blank 16
20Y7 fill in the blank 17
20Y6 fill in the blank 18
20Y5 fill in the blank 19
20Y4 fill in the blank 20

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