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PR 14-5A S Addai Company ha olvency and profitability trend analysis s provided the following comparative information: 20Y7 20Y6 20YS 20Y8 273,406 367,976 $ 631,176

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PR 14-5A S Addai Company ha olvency and profitability trend analysis s provided the following comparative information: 20Y7 20Y6 20YS 20Y8 273,406 367,976 $ 631,176 884,000 20 $ 800000 Net income Interest expense Income tax expense Total assets (ending balance) Total stockholders'equity 616,047 572,003528,165 495,000 53,560 106,720 160,000 40000 31,749 4417,178 4,124,350 3,732,443 3,338,500 3,706,557 3,433,152 3,065,176 2,434,000 1 1550,000 (ending balance) Average total assets 4,270,764 3.928,396 3.535,472 3,044,250 24smo 1,150,000 Average total stockholders' equity 3,569,855 3,249,164 2,749,588 1,992,000 1,1 You have been asked to evaluate the historical performance of the company over the las years Selected industry ratios have remained relatively steady at the following levels for five years: Return on total assets Return on stockholders' equity Times interest earned Ratio of liabilities to stockholders' equity 20Y4-20Y8 28% 1896 2.7 0.4 Instructions 1. Prepare four line graphs with the rati o on the vertical axis and the years on the horizontal axis for the following four ratios (round to one decimal place): A. Return on total assets B. Return on stockholders equity C. Times interest earned D. Ratio of liabilities to stockholders' equity Display both the company ratio and the industry benchmark on each graph. That is, ach graph should have two lines. 2.Prepare an analysis of the graphs in ()

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