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Profitability Ratios The following selected data were taken from the financial statements of Vidahll Inc. for December 31, 2017, 2016 and 2015: December 31 2017

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Profitability Ratios The following selected data were taken from the financial statements of Vidahll Inc. for December 31, 2017, 2016 and 2015: December 31 2017 2016 2015 Total $276.000 $249,000 $222.000 Notes payable (o interest 90,000 90,000 90,000 Common stock 36.000 36.000 36.000 Preferred 6 stock. $100 per 18,000 18,000 18.000 (no change during year) Retained earnings 106,725 72.180 54,000 The 2017 net income was $35.625, and the 2016 et income was $19.260. No dividends on common stock were declared between 2015 and 2007. Preferred dividends were declared and paid in full in 2015 and 2017 a. Determine the return on total, the rate earned 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 Retum on total assets Retum on Mockholders' equity 9 Return on common stockholders' equity b. The profitability ratios indicate that Vidhill Inc.'s profitability has Since the rate of return on assess the return on stockholders' uity in both years, there must be leverage from the use of debt Profily Ratios The following selected data were taken from the financial statements of Vidal Inc. for December 31, 2017, 2016, and 2015 December 31 2017 2016 2015 $276.000 $249.000 $222.000 Notes payable (8% interest 90.000 90.000 90.000 Common stock 36.000 36.000 36.000 Preferred 6 stock $100 par 18.000 18,000 16.000 (no change during year) Retained earnings 106.725 72,180 54.000 The 2017 net income was $35,625, and the 2016 net income was $19.260. No dividends on common stock war dadared between 2015 and 2017. Preferred dividends were declared and paid in full in 2016 and 2017 .. Determine the return on total assets, the rate earned on stockholders' equity, and the return on common ockholders out for the year 2018 and 2007. When required, round to one decimal place 2016 2017 Return on total assets Return on stockholders' equity Return on common stockholders' equity b. The profitability ratios indicate that Vidal Inc.'s profitability has leverage from the use of debt Since the rate of return on a the return on stockholders' equity in both years, there must be

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