ProfitabilityRatios

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

December 3120Y7 20Y6 20Y5

Total assets : $295,000$266,000$237,000

Notes payable (8% interest): 100,000100,000100,000

Common stock: 40,00040,00040,000

Preferred 5% stock, $100 par: 20,00020,00020,000(no change during year)

Retained earnings: 108,03074,15060,000

The 20Y7 net income was $34,880, and the 20Y6 net income was $15,150. 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 thereturn on total assets, thereturn on stockholders' equity, and thereturn on common stockholders' equityfor the years 20Y6 and 20Y7.Round percentages to one decimal place.