Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Critelli Company has provided the following comparative information: Year 5 Year 4 Year 3 Year 2 Year 1 Net income $1,117,900 $963,700 $809,800 $692,100 $586,500
Critelli Company has provided the following comparative information: Year 5 Year 4 Year 3 Year 2 Year 1 Net income $1,117,900 $963,700 $809,800 $692,100 $586,500 Interest expense 380,100 346,900 299,600 228,400 181,800 Income tax expense 357,728 269,836 226,744 179,946 140,760 Average total assets 6,267,782 5,529,958 4,720,851 4,002,174 3,399,558 Average stockholders' equity 2,153,950 1,923,553 1,676,605 1,482,013 1,294,702 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 assets 23.6 % Return on stockholders' equity 48.7 % Times interest earned 4.6 Instructions: Calculate three ratios for Year 1 through Year 5. Round to one decimal place. a. Return on total assets: Year 5 fill in the blank 1 % Year 4 fill in the blank 2 % Year 3 fill in the blank 3 % Year 2 fill in the blank 4 % Year 1 fill in the blank 5 % b. Return on stockholders' equity: Year 5 fill in the blank 6 % Year 4 fill in the blank 7 % Year 3 fill in the blank 8 % Year 2 fill in the blank 9 % Year 1 fill in the blank 10 % c. Times interest earned: Year 5 fill in the blank 11 Year 4 fill in the blank 12 Year 3 fill in the blank 13 Year 2 fill in the blank 14 Year 1 fill in the blank 15
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started