Profitability Ratios

The following selected data were taken from the financial statements of Vidahill Inc. for December $31,20$Y$7,20$Y$6,$ and $20$Y$5$:

The $20Y7$ net income was $$27,920,$ and the $20Y6$ net income was $$15,620.$ No dividends on common stock were declared between $2$

dividends were declared and paid in full in $20Y6$ and $20Y7.$

a$.$ Determine the return on total assets, the return on stockholders' equity, and the return on common stockholders' equity for the $y$

Round percentages to one decimal place.

b$.$ The profitability ratios indicate that the company's profitability has deteriorated $-.$ Since the rate of return on total assets is gre

on stockholders' equity in both years, there must be positive $-$ leverage from the use of debt.