Addai Company has provided the following comparative information:

	20Y8		20Y7		20Y6		20Y5		20Y4
Net income	$975,800		$841,200		$706,900		$604,200		$512,000
Interest expense	331,800		302,800		261,600		199,400		158,700
Income tax expense	312,256		235,536		197,932		157,092		122,880
Total assets (ending balance)	7,401,315		7,892,253		5,646,209		5,952,593		4,514,050
Total stockholders' equity (ending balance)	2,289,980		2,832,330		1,802,380		2,295,592		1,377,356
Average total assets	7,646,784		6,769,231		5,799,401		4,960,494		4,244,937
Average stockholders' equity	2,561,155		2,317,355		2,048,986		1,836,474		1,625,397

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	16.8%
Return on stockholders equity	34.9%
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
20Y7	fill in the blank
20Y6	fill in the blank
20Y5	fill in the blank
20Y4	fill in the blank

b. Return on stockholders equity:

20Y8	fill in the blank
20Y7	fill in the blank
20Y6	fill in the blank
20Y5	fill in the blank
20Y4	fill in the blank

c. Times interest earned:

20Y8	fill in the blank
20Y7	fill in the blank
20Y6	fill in the blank
20Y5	fill in the blank
20Y4	fill in the blank

d. Ratio of liabilities to stockholders' equity:

20Y8	fill in the blank
20Y7	fill in the blank
20Y6	fill in the blank
20Y5	fill in the blank
20Y4	fill in the blank

2. Refer to the selected industry ratios provided above. (choose 1 option from bold below)

Both the rate earned on total assets and the rate earned on stockholders' equity have been moving in a

(positive/ negative) direction in the last five years. Both measures have moved (above/below)

the industry average over the last two years. The cause of this change is driven by a rapid (increase/decrease) in earnings.