Crosby Company has provided the following comparative information:

	20Y8		20Y7		20Y6		20Y5		20Y4
Net income	$5,571,720		$3,714,480		$2,772,000		$1,848,000		$1,400,000
Interest expense	1,052,060		891,576		768,600		610,000		500,000
Income tax expense	1,225,572		845,222		640,320		441,600		320,000
Total assets (ending balance)	29,378,491		22,598,839		17,120,333		12,588,480		10,152,000
Total stockholders equity (ending balance)	18,706,200		13,134,480		9,420,000		6,648,000		4,800,000
Average total assets	25,988,665		19,859,586		14,854,406		11,370,240		8,676,000
Average total stockholders' equity	15,920,340		11,277,240		8,034,000		5,724,000		4,100,000

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	19%
Return on stockholders equity	26%
Times interest earned	3.4
Ratio of liabilities to stockholders equity	1.4

Required:

1. Determine the following for the years 20Y4 through 20Y8 for each of the graphs below. Use the amounts given above in your calculations. Round to one decimal place.

a. Return on total assets:

20Y8	fill in the blank 1 %
20Y7	fill in the blank 2 %
20Y6	fill in the blank 3 %
20Y5	fill in the blank 4 %
20Y4	fill in the blank 5 %

b. Return on stockholders equity:

20Y8	fill in the blank 6 %
20Y7	fill in the blank 7 %
20Y6	fill in the blank 8 %
20Y5	fill in the blank 9 %
20Y4	fill in the blank 10 %

c. Times interest earned:

20Y8	fill in the blank 11
20Y7	fill in the blank 12
20Y6	fill in the blank 13
20Y5	fill in the blank 14
20Y4	fill in the blank 15

d. Ratio of liabilities to stockholders' equity:

20Y8	fill in the blank 16
20Y7	fill in the blank 17
20Y6	fill in the blank 18
20Y5	fill in the blank 19
20Y4	fill in the blank 20

2. Refer to the selected industry ratios provided above. Overall, these ratios indicate

strongweak

financial performance coupled with

appropriateinappropriate

use of debt (leverage).

a. Return on total assets: 30.0% 25.0% 20.0% Return on Total Assets 15.0% 10.0% 5.0% 0.0% 20Y8 2014 2017 2046 2045 Year Company's return on total assets +Industry return on total assets 40.0% 35.0% 30.0% 25.0% Return on Stockholders' Equity 20.0% 15.0% 10.0% 5.0% 0.0% 2048 2074 2017 2016 2045 Year Company's return on stockholders' equity Industry return on stockholders' equity 8.0 7.0 6.0 5.0 4.0 Times Interest Earned 3.0 1.0 0.0 20Y8 2047 20Y6 2015 2074 Year Company's times interestearned +Industry times interest eamed 1.6 1.4 1.2 1.0 0.8 Ratio of Liabilities to Stockholders' Equity 0.6 0.4 0.2 0.0 20Y8 2047 2074 2046 2015 Year Company's liabilities to equity Industry liabilities to equity