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Please refer to the picture: Profitability Ratios The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 2017, 2016,
Please refer to the picture:
Profitability Ratios The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 2017, 2016, and 20Y5: December 31 2017 2016 20Y5 Total assets $231,000 $208,000 $185,000 Notes payable (8% interest) 80,000 80,000 80,000 Common stock 32,000 32,000 32,000 Preferred 4% stock, $100 par 16,000 16,000 16,000 (no change during year) Retained earnings 89,880 59,010 48,000 The 2017 net income was $31,510, and the 2016 net income was $11,650. No dividends on common stock were declared between 2015 and 2047. Preferred dividends were declared and paid in full in 2016 and 20Y7. a. Determine the return on total assets, the return on stockholders' equity, and the return on common stockholders' equity for the years 2046 and 2047. When required, round to one decimal place. 2017 2046 Return on total assets 9.7 X % 4.0 X % Return on stockholders' equity 22.9 X % 10.9 X % Return on common stockholders' equity 96.5 X % 34.4 X %Step by Step Solution
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