Profitability Ratios The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 2017, 20Y6, and 20Y5: December 31 20Y7 20Y6 20Y5 Total assets $324,000 $292,000 $260,000 Notes payable (8% interest) 110,000 110,000 110,000 Common stock 44,000 44,000 44,000 Preferred 4% stock, $100 par 22,000 22,000 22,000 (no change during year) Retained earnings 124,960 84,480 66,000 The 2017 net income was $41,360, and the 20Y6 net income was $19,360. 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 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. Return on total assets 20Y7 % 20Y6 % Return on stockholders' equity % % Return on common stockholders' equity % % b. The profitability ratios indicate that Vidahill Inc.'s profitability has Since the rate of return on assets is the return on stockholders' equity in both years, there must be leverage from the use of debt.