Profitability Ratios The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 2017, 2086, and 2015: December 31 2017 2016 2015 Accounting numeric field Total assets Notes payable (8% interest) $175,000 $158,000 $141,000 60,000 60,000 60,000 Common stock 24,000 24,000 24,000 Preferred 6% stock, $100 par 12,000 12,000 12,000 (no change during year) Retained earnings 66,970 48,715 36,000 The 2017 net income was $18,975, and the 20Y6 net income was $13,435. No dividends on common stock were declared between 2015 and 2017. Preferred dividends were declared and paid in full in 2046 and 2017. a. Determine the return on total assets, the return on stockholders' equity, and the return on common stockholders' equity for the years 2046 and 2017. When required, round to one decimal place. 2017 2016 Return on total assets % % Return on stockholders' equity % % Return on common stockholders' equity % % V. Since the return on assets is less than the return on stockholders' equity in both years, there must be positive leverage from the use b. The profitability ratios indicate that the company's profitability has improved of debt. Profitability Ratios East Point Retail, Inc., sells professional women's apparel through company-owned retail stores. Recent financial information for East Point is provided below (all numbers in thousands). Fiscal Year 3 Fiscal Year 2 Net income $135,100 $69,600 Interest expense 2,800 10,400 Fiscal Year 3 Fiscal Year 2 Fiscal Year 1 Total assets (at end of fiscal year) $2,141,629 $2,037,159 $1,772,365 Total stockholders' equity (at end of fiscal year) 1,057,760 1,036,814 770,978 Assume the apparel industry average return on total assets is 8.0%, and the average return on stockholders' equity is 15.0% for the year ended April 2, Year 3. a. Determine the return on total assets for East Point for fiscal Years 2 and 3. Round to one decimal place. Fiscal Year 3 % Fiscal Year 2 % B b. Determine the return on stockholders' equity for East Point for fiscal Years 2 and 3. Round to one decimal place. Fiscal Year 3 % Fiscal Year 2 %