Profitability ratios The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 2017, 2016, and 2015: December 31 December 31 December 31 2017 2016 2015 Total assets $226,000 $204,000 $182,000. Notes payable (8% interest) 80,000 80,000 80,000 Common stock 32,000 32,000 32,000 Preferred 5% stock, $100 par (no change during year) Retained earnings 16,000 77,430 16,000 60,430 16,000 48,000 The 2017 net income was $17,800, and the 2016 net income was $13,230. 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 your answers to one decimal place. 2017 2016 Return on total assets 6.5 X % 6.5 X % Return on stockholders' equity 8.7 X %1 8.7 x % Return on common stockholders' equity 11.5 X % 11.5 X % b. The profitability ratios indicate that the company's profitability has improved stockholders' equity in both years, there must be positive Since the return on assets is less than leverage from the use of debt. the return on Check My Work Previous Next > Ratio of liabilities to stockholders' equity and times interest earned The following data were taken from the financial statements of Hunter Inc. for December 31 of two recent years: Current Year Previous Year Accounts payable $366,000 $110,000 Current maturities of serial bonds payable 240,000 240,000 Serial bonds payable, 10% 1,020,000 1,260,000 Common stock, $1 par value: 50,000 70,000 Paid-in capital in excess of par 600,000 Retained earnings 2,060,000 600,000 1,630,000 The income before income tax expense was $327,600 and $286,600 for the current and previous years, respectively. a. Determine the ratio of liabilities to stockholders' equity at the end of each year. Round your answers to one decimal place. Current yea Previous year 0.6 0.7 b. Determine the times interest earned ratio for both years. Round your answers to one decimal place. Current year Previous year 4.2 X 3.3 X c. The ratio of liabilities to stockholders' equity has improved. previous year. These results are the combined result of a larger Check My Work All work saved. and the number of times bond interest charges were earned has improved income before income taxes and lower interest expense in the current Previous Save and Exit Submit Assignm