Solvency and Profitability Trend Analysis Addai Company has provided the following comparative information: 20Y8 20Y7 20Y6 20Y5 20Y4 Net income Interest expense $1,322,400 $1,140,000 $958,000 $818,800 $693,900 449,600 Income tax expense 423,168 Total assets (ending balance) 7,542,736 Total stockholders' equity (ending balance) 2,408,595 2,891,605 1,848,519 2,289,709 Average total assets 7,737,991 Average stockholders' equity 2,650,100 2,370,062 2,069,114 410,400 354,500 319,200 268,240 7,933,246 5,726,666 5,940,000 4,504,500 1,373,825 6,829,956 5,833,333 4,950,000 4,208,333 1,831,767 1,602,540 270,200 215,100 212,888 166,536 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 Return on total assets Return on stockholders' equity Times interest earned 22.6% 46.7% 4.6 Ratio of liabilities to stockholders' equity 2.1