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Solvency and Profitability Trend Analysis Addai Company has provided the following comparative information: 20Y8 2017 2016 20Y5 20Y4 Net income Interest expense 290,400 Income
Solvency and Profitability Trend Analysis Addai Company has provided the following comparative information: 20Y8 2017 2016 20Y5 20Y4 Net income Interest expense 290,400 Income tax expense Total assets (ending balance) Total stockholders' equity (ending balance) Average total assets Average stockholders' equity $935,700 318,100 299,424 225,848 189,784 5,055,440 5,306,544 3,835,122 3,968,240 3,009,249 1,623,986 1,940,586 1,241,268 1,530,920 918,552 5,180,992 4,570,833 3,901,681 3,306,867 2,808,297 1,782,286 1,590,927 1,386,094 250,800 $806,600 $677,800 $579,300 $490,900 152,200 191,200 150,618 117,816 1,224,736 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: 20Y4-20Y8 1,069,499 Return on total assets Return on stockholders' equity Times interest earned Ratio of liabilities to stockholders' equity Required: 23.9% 49.3% 4.6 2.1 23 1. Determine the following for the years 2014 through 20Y8. Round to one decimal place: 1. Determine the following for the years 2014 through 2018. Round to one decimal place: a. Return on total assets: 2018 % 2017 % 2016 % 2015 % 2014 % b. Return on stockholders' equity: 2018 2017 2016 2015 2014 c. Times interest earned: 2018 % % % % % 11111 2017 2016 2015 2014 d. Ratio of liabilities to
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