Profitability Ratios The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 2017, 2016, and 20Y5: December 31 2017 2016 20Y5 Total assets $307,000 $277,000 $247,000 Notes payable (8% interest) 100,000 100,000 100,000 Common stock 40,000 40,000 40,000 Preferred 6% stock, $100 par 6% , 20,000 20,000 20,000 (no change during year) Retained earnings 109,920 80,240 60,000 The 2017 net income was $30,880, and the 2016 net income was $21,440. No dividends on common stock were declared between 20Y5 and 2047. Preferred dividends were declared and paid in full in 2016 and 2047. a. Determine the return on total assets, the return on stockholders' equity, and the return on common stockholders' equity for the years 2046 and 2047. When required, round to one decimal place 2017 2016 % % Return on total assets Return on stockholders' equity Return on common stockholders' equity %6 % % % Since the return on assets is the return on stockholders' equity in both years, there must be b. The profitability ratios indicate that the company's profitability has leverage from the use of debt