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Addai Company has provided the following comparative information: 20Y8 20Y7 20Y6 20Y5 20Y4 Net income $1,253,700 $1,080,800 $908,200 $776,200 $657,800 Interest expense 426,300 389,100 336,000


Addai Company has provided the following comparative information:


20Y820Y720Y620Y520Y4
Net income$1,253,700
$1,080,800
$908,200
$776,200
$657,800
Interest expense426,300
389,100
336,000
256,100
203,900
Income tax expense401,184
302,624
254,296
201,812
157,872
Total assets (ending balance)8,202,816
8,681,606
6,241,236
6,519,790
4,944,174
Total stockholders' equity (ending balance)2,588,354
3,149,404
2,009,546
2,520,130
1,512,078
Average total assets8,442,211
7,461,421
6,380,513
5,433,158
4,632,796
Average stockholders' equity2,868,879
2,579,475
2,264,838
2,016,104
1,773,046

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―20Y8
Return on total assets19.6%
Return on stockholders’ equity40.5%
Times interest earned4.6
The ratio of liabilities to stockholders' equity2.1

Required:

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

a. Return on total assets:

20Y8fill in the blank 1%
20Y7fill in the blank 2%
20Y6fill in the blank 3%
20Y5fill in the blank 4%
20Y4fill in the blank 5%

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