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Critelli Company has provided the following comparative information: Year 5 Year 4 Year 3 Year 2 Year 1 Net income $1,314,900 $1,133,500 $952,500 $814,100 $689,900

Critelli Company has provided the following comparative information:

Year 5Year 4Year 3Year 2Year 1
Net income$1,314,900$1,133,500$952,500$814,100$689,900
Interest expense447,100408,100352,400268,700213,900
Income tax expense420,768317,380266,700211,666165,576
Average total assets10,678,7889,457,6698,104,9696,941,0265,946,053
Average stockholders' equity3,553,7843,220,1702,851,7962,560,0632,269,408

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:

Industry Ratios
Return on total assets16.2 %
Return on stockholders' equity33.8 %
Times interest earned4.6

Instructions:

Calculate three ratios for Year 1 through Year 5. Round to one decimal place.

a. Return on total assets:

b. Return on stockholders' equity:

c. Times interest earned:

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a Return on Total Assets ROA ROA Net Income Average Total Assets Year 1 ROA 689900 5946053 0116 or 1... blur-text-image

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