Profitability Ratios The following selected data were taken from the financlal statements of Squiggle Group Inc. for December 31, 2016, 2015 and 2014: December 31 2016 2015 2014 Total assets Notes payable (10% interest) Common stock Preferred 6% stock, $100 par $201,000 70,000 28,000 14,000 $181,000 70,000 28,000 14,000 $161,000 70,000 28,000 14,000 (no change during year) Retained earnings The 2016 net income was $27,380, and the 2015 net income was $15,230. No dividends on common stock were declared between 2014 and 2016. a. Determine the rate earned on total assets, the rate earned on stockholders' equity, and the rate earned on common stockholders' equity for the years 2015 and 2016. When required, round to one decimal place. 82,930 56,390 42,000 2016 2015 Rate earned on total assets Rate earned on stockholders' equity Rate earned on common stockholders' equity b. The profitability ratios indicate that Squiggle Group Inc.'s profitability has improved .Since the rate of returm on assets is greater than the change in net income in both years, there must be positiveleverage from the use of debt