Solvency and Profitability Trend Analysis Addai Company has provided the following comparative information: 20Y8 2017 2016 2045 20Y4 Net income $1,034,500 $891,800 $749,400 $640,500 $542,800 Interest expense 351,700 321,000 277,300 211,400 168,300 Income tax expense 331,040 249,704 209,832 166,530 130,272 7,229,593 7,675,783 5,506,825 5,775,593 4,379,825 Total assets (ending balance) Total stockholders' equity (ending balance) 2,257,151 2,764,693 1,762,211 2,223,959 1,334,375 Average total assets 7,452,688 6,591,304 4,812,994 4,110,405 5,641,209 1,993,085 Average stockholders' equity 2,510,922 2,263,452 1,779,167 1,568,786 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 18.3% Return on stockholders' equity 38% Times interest earned 4.6 Ratio of liabilities to stockholders' equity 2.1 1. Determine the following for the years 2014 through 2048. Round to one decimal place: a. Return on total assets: 2018 % 2017 % 2016 % 2015 % 20Y4 % b. Return on stockholders' equity: 20Y8 % 2017 % 2016 % 2015 % 2014 % c. Times interest earned: 2018 2017 2016 lllll 2015 20Y4 d. Ratio of liabilities to stockholders' equity: 2018 2017 2016 lllll 2015 2014 2. Refer to the selected industry ratios provided above. direction in the last five years. Both measures have moved the industry average over the Both the rate earned on total assets and the rate earned on stockholders' equity have been moving in a last two years. The cause of this change is driven by a rapid in earnings