Profitability Ratios The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 20Y7, 20Y6, and 20Y5: December 31 20Y7 20Y6 20Y5 Total assets $225,000 $203,000 $181,000 Notes payable (8% interest) 80,000 80,000 80,000 Common stock 32,000 32,000 32,000 Preferred 6% stock, $100 par 16,000 16,000 16,000 (no change during year) Retained earnings 72,820 58,240 48,000 The 2017 net income was $15,540, and the 2016 net income was $11,200. 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. Round percentages to one decimal place. 20Y7 20Y6 Return on total assets Return on stockholders' equity 10.2 X % 9.2 % 6.8 X % 5.5 X % Return on common stockholders' equity 15 X % 12 % b. The profitability ratios indicate that the company's profitability has improved from the use of debt. . Since the rate of return on total assets is greater than X the return on stockholders' equity in both years, there must be negative X leverage