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 $186,000 $168,000 $150,000 Notes payable (8% interest) 60,000 Recta 60,000 nip 60,000 Common stock 24,000 24,000 24,000 Preferred 4% stock, $100 par 12,000 12,000 12,000 (no change during year) Retained earnings 70,800 45,420 36,000 The 2017 net income was $25,860, and the 20Y6 net income was $9,900. No dividends on common stock were declared between 2005 and 20Y7. Preferred dividends were declared and paid in full in 2006 and 20Y7. a. Determine the return on total assets, the return on stockholders' equity, and the return on common stockholders' equity for the years 20Y6 and 20Y7. When required, round to one decimal place. 20Y7 20Y6 Return on total assets Return on stockholders' equity % % % % Return on common stockholders' equity % % b. The profitability ratios indicate that the company's profitability has improved both years, there must be positive Since the return on assets is less than the return on stockholders' equity in leverage from the use of debt