Profitability ratios The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 20Y7, 20Y6, and 20Y5: Line Item Description December 31 20Y7 December 31 20Y6 December 31 20Y5 Total assets $185,000 $167,000 $149,000 Notes payable (8% interest) 60,000 60,000 60,000 Common stock 24,000 24,000 24,000 Preferred 3% stock, $100 par (no change during year) 12,000 12,000 12,000 Retained earnings 67,240 45,440 36,000 The 20Y7 net income was $22,160, and the 20Y6 net income was $9,800. No dividends on common stock were declared between 20Y5 and 20Y7. Preferred 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 years 20Y6 and 20Y7. When required, round your answers to one decimal place. Line Item Description 20Y7 20Y6 Return on total assets fill in the blank 1 % fill in the blank 2 % Return on stockholders' equity fill in the blank 3 % fill in the blank 4 % Return on common stockholders equity fill in the blank 5 % fill in the blank 6 % b. The profitability ratios indicate that the company's profitability has fill in the blank 1 of 3 improved . Since the return on assets is fill in the blank 2 of 3 less than the return on stockholders' equity in both years, there must be fill in the blank 3 of 3 positive leverage from the use of debt.

The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 20Y7, 20Y6, and 20Y5: The 20Y7 net income was $22,160, and the 20Y6 net income was $9,800. No dividends on common stock were declared between 20Y5 and 20Y7. Preferred 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 years 20Y6 and 20Y7. When required, round your answers to one decimal place. b. The profitability ratios indicate that the company's profitability has the return on stockholders' equity in both years, there must be . Since the return on assets is leverage from the use of debt