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Critelli Company has provided the following comparative information: Year 5 Year 4 Year 3 Year 2 Year 1 Net income $1,050,500 $905,600 $761,000 $650,400 $551,200

Critelli Company has provided the following comparative information:

Year 5 Year 4 Year 3 Year 2 Year 1
Net income $1,050,500 $905,600 $761,000 $650,400 $551,200
Interest expense 357,200 326,000 281,600 214,600 170,900
Income tax expense 336,160 253,568 213,080 169,104 132,288
Average total assets 6,578,037 5,809,434 4,964,762 4,219,512 3,592,537
Average stockholders' equity 2,249,465 2,016,927 1,765,661 1,567,229 1,374,564

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 21.1 %
Return on stockholders' equity 43.5 %
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
Year 4
Year 3
Year 2
Year 1

b. Return on stockholders' equity:

Year 5
Year 4
Year 3
Year 2
Year 1

c. Times interest earned:

Year 5
Year 4
Year 3
Year 2
Year 1

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