Profitability Ratios The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 20Y7, 20Y6, and 20Y5: Total assets Notes payable (8% interest) Common stock Preferred 5% stock, $100 par (no change during year) Retained earnings 20Y7 $311,000 100,000 40,000 20,000 December 31 20Y6 $280,000 100,000 40,000 20,000 125,575 83,385 60,000 The 2017 net income was $43,190, and the 20Y6 net income was $24,385. No dividends on common stock were declared between 20Y5 and 20Y7. Preferred dividends were declared and paid in full in 20Y6 and 20Y7. 20Y7 Return on total assets Return on stockholders' equity Return on common stockholders' equity b. The profitability ratios indicate that the company's profitability has both years, there must be 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. % % 20Y5 $249,000 100,000 40,000 20,000 % leverage from the use of debt. 20Y6 % % % Since the return on assets is the return on stockholders' equity in Previous Next

Prohtabilicy ilatios The following selected data were taken from the financial statements of Vidahil Inc. for December 31, 2097, 20Y5, and 20Y5: The 20Y7 net income was $43,190, and the 20Y6 net income was 524,385 . No dividends on common stock were dectared between 20r5 and 207. Preferred dividends were declared and paid in full in 20 r6 and 20r7. decimal ptace. b. The profitability ratios indicate that the company's protiabily has Since the retum on assets is the return on stockhoiders' equity in both years, there must be leverage from the use of debt