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The following selected data were taken from the financial statements of Squiggle Group Inc. for December 31, 2016, 2015 and 2014:

		December 31
		2016		2015		2014
Total assets		$172,000		$155,000		$138,000
Notes payable (10% interest)		60,000		60,000		60,000
Common stock		24,000		24,000		24,000
Preferred 5% stock, $100 par		12,000		12,000		12,000
	(no change during year)
Retained earnings		66,880		44,050		36,000

The 2016 net income was $23,430, and the 2015 net income was $8,650. No dividends on common stock were declared between 2014 and 2016.

a. Determine the rate earned on total assets, the rate earned on stockholders' equity, and the rate earned on common stockholders' equity for the years 2015 and 2016. When required, round to one decimal place.

	2016		2015
Rate earned on total assets		%		%
Rate earned on stockholders' equity		%		%
Rate earned on common stockholders' equity		%		%

b. The profitability ratios indicate that Squiggle Group Inc.'s profitability has . Since the rate of return on assets is the change in net income in both years, there must be leverage from the use of debt.