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eBook Show Me How Question Content Area Profitability ratios The following selected data were taken from the financial statements of Vidahill Inc. for December 31,

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Profitability ratios

The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 20Y7, 20Y6, and 20Y5:

Line Item Description December 31 20Y7 December 31 20Y6 December 31 20Y5
Total assets $307,000 $277,000 $247,000
Notes payable (8% interest) 100,000 100,000 100,000
Common stock 40,000 40,000 40,000
Preferred 4% stock, $100 par (no change during year) 20,000 20,000 20,000
Retained earnings 132,880 91,120 60,000

The 20Y7 net income was $42,560, and the 20Y6 net income was $31,920. No dividends on common stock were declared between 20Y5 and 20Y7. Preferred dividends were declared and paid in full in 20Y6 and 20Y7.

a. Determine the return on total assets, the return on stockholders' equity, and the return on common stockholders equity for the years 20Y6 and 20Y7. When required, round your answers to one decimal place.

Line Item Description 20Y7 20Y6
Return on total assets fill in the blank 1 % fill in the blank 2 %
Return on stockholders' equity fill in the blank 3 % fill in the blank 4 %
Return on common stockholders equity fill in the blank 5 % fill in the blank 6 %

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