Solvency and Profitability Trend Analysis Addai Company has provided the following comparative information: 20Y8 2017 2016 2015 2014 Net income $1,081,200 $932,100 $783,300 $669,500 $567,400 Interest expense 367,600 335,600 289,800 220,900 175,900 Income tax expense 345,984 260,988 219,324 174,070 136,176 6,219,245 6,545,513 4,722,931 4,901,285 3,716,808 1,988,084 2,389,244 1,527,142 1,893,382 1,136,030 Total assets (ending balance) Total stockholders' equity (ending balance) Average total assets Average stockholders' equity 6,382,379 5,634,222 4,812,108 4,084,404 3,473,364 2,188,664 1,958,193 1,710,262 1,514,706 1,325,701 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 22.4% Return on stockholders' equity 46.2% Times interest earned 4.6 Ratio of liabilities to stockholders' equity 2.1 Required: 1. Determine the following for the years 2014 through 2048. Round to one decimal place: a. Return on total assets: 20Y8 % 2017 % Ratio of liabilities to stockholders' equity 2.1 Required: 1. Determine the following for the years 2014 through 2048. Round to one decimal place: a. Return on total assets: 20Y8 % 2047 % 20Y6 % 2015 % 20Y4 % b. Return on stockholders' equity: 20Y8 % 2017 % 2046 % 2045 % 2014 % c. Times interest earned: 20Y8 2017 20Y6 20Y5 2014 c. Times interest earned: 2018 2017 2016 Kull 2045 20Y4 d. Ratio of liabilities to stockholders' equity: 20Y8 2017 2016 2045 2014 2. Refer to the selected industry ratios provided above. direction in the last five years. Both measures have moved the Both the rate earned on total assets and the rate earned on stockholders' equity have been moving in a industry average over the last two years. The cause of this change is driven by a rapid in earnings