Novak Company manufactures backpacks. During 2025, Novak issued bonds at 12% interest and used the cash proceeds to purchase treasury stock. The following financial information is available for Novak Company for the years 2025 and 2024. 2025 2024 Sales revenue Net income Interest expense $9,100,000 $9,100,000 2,504,250 2,689,250 510,000 142,000 Tax expense 657,750 747,150 Dividends paid on common stock 1,001,700 1,129,485 Dividends paid on preferred stock 330,000 330,000 Total assets (year-end) 15,000,000 16,500,000 Average total assets Total liabilities (year-end) 15,750,000 17,350,000 6,345,000 2,640,000 Avg. total common stockholders' equity 19,740,000 29,610,000 (a) Use the information above to calculate the following ratios for both years: (Round answers to 1 decimal place, e.g. 12.5 or 12.5%.) (1) Return on assets (2) Return on common stockholders' equity (3) Payout ratio (4) Debt to assets ratio (5) Times interest earned 2025 15.9 % 40 42.3 de % % do de % times 2024 15.5 % 42 % de de % 16 16 % times