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Addai Company has provided the following comparative information: 20Y8 20Y7 20Y6 20Y5 20Y4 Net income $992,700 $855,800 $719,200 $614,700 $520,900 Interest expense 337,500 308,100 266,100

Addai Company has provided the following comparative information:

20Y8 20Y7 20Y6 20Y5 20Y4
Net income $992,700 $855,800 $719,200 $614,700 $520,900
Interest expense 337,500 308,100 266,100 202,900 161,500
Income tax expense 317,664 239,624 201,376 159,822 125,016
Total assets (ending balance) 6,725,274 7,130,976 5,120,602 5,361,312 4,065,662
Total stockholders' equity (ending balance) 2,113,151 2,580,467 1,645,705 2,071,091 1,242,655
Average total assets 6,928,125 6,125,789 5,240,957 4,467,760 3,812,291
Average stockholders' equity 2,346,809 2,113,086 1,858,398 1,656,873 1,459,104

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 18.9%
Return on stockholders equity 39.1%
Times interest earned 4.6
Ratio of liabilities to stockholders' equity 2.1

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

a. Return on total assets:

20Y8 %
20Y7 %
20Y6 %
20Y5 %
20Y4 %

b. Return on stockholders equity:

20Y8 %
20Y7 %
20Y6 %
20Y5 %
20Y4 %

c. Times interest earned:

20Y8
20Y7
20Y6
20Y5
20Y4

d. Ratio of liabilities to stockholders' equity:

20Y8
20Y7
20Y6
20Y5
20Y4

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