eBook Caloulator Solvency and Profitability Trend Analysis tive information Addal Company has provided the following compara 20YS 20Y7 20Y6 20YS 20Y4 $273,406 $367,976 $631,176 $884,000 $800,000 616,047 572,003 528,165 95,00 440,000 31,749 53,560 106,720 160,000 200,000 ,417,178 4,124,30 3,732,443 3,338,500 2,750,000 Net Income Interest expense Income tax expense Total assets (ending balance) Total stockholders' equity (ending balance) 3,706,557 3,433,152 3,065,176 2,434,000 1,550,000 Average total assets Average total stockholders' equity 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: ,270,764 3,928,396 3,535,472 3,044,250 2,475,000 ,569,855 3,249,164 2,749,588 1,992,000 1,150,000 20Y4-20YB 28% Return on total assets Return on stockholders" equity Times interest earned Ratio of liabilities to stockholders' equity Required: 18% 1. Determine the following for the years 20Y4 through 20Y8 for each of the graphs below. Use the amounts given above in your ca a. Return on total assets: 600% 500% 400% Check My Work Ernail Instructor Sa eBook Calculator 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. Returm on total assets: 60.0% 50.0% 400% 30.0% 200% 10.0% 0.0% 20Y5 20Y4 20Y6 Year -company's return on total assets -Industry retum on total assets 20Y8 20Y7 20YB 2017 20Y5 20Y4 b. Return on stockholders' equity: 800% 70.0% 600% 50.0% 40.0% 30.0% 20.0% 10.0% 00% 20Y8 20Y7 20Y6 20Y5 20Y4 Year Company's return on stockholders' equity Industry return on stockholders equity 20Y8 20Y7 20Y6 20YS 20Y4 c. Times interest earned: Check My Work Calculator e. Times interest earned: 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 20Y8 20Y7 20Y6 20Y5 20Y4 Year Company's tmes interest earned Industry times interest earned 20Y8 20Y7 20Y6 20YS d. Ratio of liabilities to stockholders' equity: Check My Work d. Ratio of liabilities to stockholders' equity: 0.9 0.8 0.7 0.6 0.5 0.4 0.3 o 0.2 0.1 0.0 20Y8 20Y7 20Y6 20Y5 20Y4 Year Companys liabilities to equity -Industry liabilities to equity 20YB 20Y7 20Y6 20YS 20Y4 er to t Check My Work 20Y8 20Y6 20Y5 -Industry liabilities to equity 2. Refer to the in earnings. The over the five years. However, the costs has caused the times interest earned ratio to