Solvency and Profitability Trend Analysis Addai Company has provided the following comparative information: 2018 2017 2016 2015 2014 Net income $979,300 $844,200 $709,400 $606,300 $513,800 Interest expense 333,000 303,900 262,500 200,100 159,300 Income tax expense 313,376 236,376 198,632 157,638 123,312 5,401,478 5,672,784 4,098,280 4,244,210 3,218,526 Total assets (ending balance) Total stockholders' equity (ending balance) 1,731,047 2,072,059 1,325,125 1,636,879 982,127 Average total assets 5,537,131 4,885,532 4,171,245 3,536,842 3,004,911 Average stockholders' equity 1,901,553 1,698,592 1,481,002 1,309,503 1,144,321 You have been asked to evaluate the historical performance of the company over the last five years. Selected industry ratios have remained relatively steady at the following levels for the last five years: 2014-2018 Return on total assets 23.4% Return on stockholders' equity 48.3% Times interest earned 4.6 Ratio of liabilities to stockholders' equity 2.1 Required: 1. Determine the following for the years 20Y4 through 2018. Round to one decimal place: a. Return on total assets: 20Y8 % 2017 % 20Y6 % 2045 % 20Y4 % b. Return on stockholders' equity: 2018 % 2017 % 20Y6 % 2015 % 2014 % c. Times interest earned: 20Y8 2017 20Y6 20Y5 2014 d. Ratio of liabilities to stockholders' equity: 20Y8 2047 2046 INDU 2045 2014