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Solvency and Profitability Trend Analysis Addai Company has provided the following comparative information: 2018 2017 Net income Interest expense Income tax expense Total assets

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Solvency and Profitability Trend Analysis Addai Company has provided the following comparative information: 2018 2017 Net income Interest expense Income tax expense Total assets (ending balance) Total stockholders' equity (ending balance) Average total assets Average stockholders' equity 2,049,270 2,524,266 1,607,468 6,803,955 6,020,571 5,155,491 2,286,768 2,065,867 1,823,529 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 2014 $898,700 $774,700 $651,000 $556,400 $471,500 305,600 278,900 240,900 183,600 287,584 216,916 182,280 144,664 113,160 6,592,036 7,015,874 5,025,268 5,285,714 4,008,333 2,039,590 1,223,754 4,404,762 3,766,463 1,631,672 1,441,896 2016 2015 146,200 Return on total assets Return on stockholders' equity Times interest earned 17.4% 36.1% 4.6 Ratio of liabilities to stockholders' equity 2.1 Required: 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 %

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