Addai Company has provided the following comparative information:

Addai Company has provided the following comparative information: ZOYB Net income $1,085,600 Interest expense 369,100 Income tax expense 347,392 Total assets (ending balance) 6,355,182 Total stockholders' equity (ending balance) 2,027,414 Average total assets 6,523,318 Average stockholders' equity 2,233,745 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: 20v7 $935,900 336,900 262,052 6,691,454 2,440,076 5,759,276 1,999,786 2 0Y4 20Y8 Return on total assets 22% Return on stockholders' equity 45.4% Times interest earned 4.6 Ratio of liabilities to stockholders' equity 2.1 Required: 20Y6 $786,500 291,000 220,220 4,827,098 1,559,496 4,920,091 1,747,778 20Y5 $672,200 221,800 174,772 5,013,084 1,936,060 4,177,570 1,548,848 1. Determine the following for the years 20Y4 through 20Y8. Round to one decimal place: 20Y4 $569,700 176,600 136,728 3,801,589 1,161,636 3,553,810 1,356,429 a. Return on total assets: 20Y8 20Y7 20Y6 20Y5 mm o 3- 20Y4 b. Return on stockholders' equity: 20Y8 9 ?~ 20Y7 20Y6 20Y5 20Y4 mm c. Times interest earned: 20Y8 20Y7 20Y6 20Y5 MUD 20Y4 d. Ratio of liabilities to stockholders' equity: 20Y8 20Y7 20Y6 20Y5 20Y4 2. Refer to the selected industry ratios provided above. Both the rate earned on total assets and the rate earned on stockholders' equity have been moving in a direction in the last five years. Both measures have moved the industry average over the last two years. The cause of this change is driven by a rapid in earnings