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Profitability Ratios Print Mem The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 2017, 2016, and 2015: Total
Profitability Ratios Print Mem The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 2017, 2016, and 2015: Total assets Notes payable (8% interest) Common stock Preferred 4% stock, $100 par (no change during year) Retained earnings December 31 2017 $243,000 2016 2015 $219,000 $195,000 80,000 80,000 80,000 32,000 32,000 32,000 16,000 16,000 16,000 90,210 64,200 48,000 The 2017 net income was $26,650, and the 20Y6 net income was $16,840. No dividends on common stock were declared between 2015 and 2017. Preferred dividends were declared and paid in full in 2016 and 2017. a. Determine the return on total assets, the return on stockholders' equity, and the return on common stockholders' equity for the years 2016 and 2017. When required, round to one decimal place. 2017 2016 Return on total assets % % Return on stockholders' equity % % Return on common stockholders' equity % % b. The profitability ratios indicate that the company's profitability has the return on stockholders' equity in both years, there must be . Since the return on assets is leverage from the use of debt
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