Profitability Ratios The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 20Y7, 20Y6, and 20Y5: December 31 20 Y7 20 Y6 20 Y5 Total assets: $248,000 $223,000 $198,000 Notes payable (8% interest) 80,000 80,000 80,000 Common stock 32,000 32,000 32,000 Preferred 4% stock, $100 par 16,000 16,000 16,000 (no change during year) Retained earnings 80,030 60,410 48,000 20 Y7 20 Y6 Return on total assets %6% Return on stockholders' equity %6 % Return on common stockholders' equity % % b. The profitability ratios indicate that the company's profitability has . Since the rate of return on assets is the return on stockholders' equity in both vears, there must be leverage from the use

Profitability Ratios The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 20Y7, 20Y6, and 20Y5