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Profitability Ratios The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 2017, 2076, and 2075: December 31 2017

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Profitability Ratios The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 2017, 2076, and 2075: December 31 2017 2046 2015 Total assets $164,000 $148,000 $132,000 Notes payable (8% interest) 50,000 50,000 50,000 Common stock 20,000 20,000 20,000 Preferred 3% stock, $100 par 10,000 10,000 10,000 (no change during year) Retained earnings 56,800 38,700 30,000 The 2017 net income was $18,400, and the 2076 net income was $9,000. No dividends on common stock were declared between 20ys 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 2076 and 2017. When required, round to one decimal place. 2017 2016 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. Since the return on assets is less than % % 96 % %

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