Solvency and Profitability Trend Analysis Addai Company has provided the following comparative information: 20Y8 2017 20Y6 20Y5 2014 Net income $1,299,800 $1,120,500 $941,600 $804,800 $682,000 Interest expense 441,900 403,400 348,400 265,600 211,400 Income tax expense 415,936 313,740 263,648 209,248 163,680 Total assets (ending balance) 8,106,280 8,560,706 6,162,966 6,422,400 4,870,320 Total stockholders' equity (ending balance) 2,572,828 3,115,574 1,989,210 2,483,950 1,490,370 Average total assets 8,333,493 7,361,836 6,292,683 5,352,000 4,558,163 Average stockholders' equity 2,844,201 2,552,392 2,236,580 1,987,160 1,744,246 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 20.6% Return on stockholders' equity 42.5% Times interest earned Ratio of liabilities to stockholders' equity 2.1 Required: 1. Determine the following for the years 2014 through 20Y8. Round to one decimal place: a. Return on total assets: 4.6 2048 % 20Y7 % 2016 % % 2015 2014 % b. Return on stockholders' equity: 20Y8 % 2017 % 2046 % 2015 % 2014 % c. Times interest earned: 20Y8 2047 2016 2045 2014 d. Ratio of liabilities to stockholders' equity: 2018 2047 2016 2015 2014 2. Refer to the selected industry ratios provided above. Both the rate earned on total assets and the rate earned on stockholders' equity have been moving in a direction in the last five years. Both measures have moved the industry average over the last two years. The cause of this change is driven by a rapid earnings. in