Profitability ratios The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 2017, 2016, and 2015: December 31 2017 2016 2015 Total assets $216,000 $195,000 $174,000 Notes payable (8% interest) 70,000 70,000 70,000 Common stock 28,000 28,000 28,000 Preferred 6% stock, $100 par 14,000 14,000 14,000 (no change during year) Retained earnings 79,705 52,610 42,000 The 2017 net income was $27,935, and the 2016 net income was $11,450. No dividends on common stock were declared between 2015 and 2077. 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 2007. When required, round your answers to one decimal place. 2017 2016 Return on total assets 14 6 % Return on stockholders' equity 67 46 27 % Return on common stockholders equity 9796 38% b. The profitability ratios indicate that the company's profitability has improved Since the return on assets is less than the return on stockholders' equity in both years, there must be positive leverage from the use of debt