Solvency and Profitability Trend Analysis

Addai Company has provided the following comparative information:

	20Y8		20Y7		20Y6		20Y5		20Y4
Net income	$1,222,800		$1,054,100		$885,800		$757,100		$641,600
Interest expense	415,800		379,500		327,700		249,800		198,900
Income tax expense	391,296		295,148		248,024		196,846		153,984
Total assets (ending balance)	8,870,553		9,437,827		6,761,043		7,107,529		5,389,876
Total stockholders' equity (ending balance)	2,755,565		3,389,159		2,158,735		2,735,187		1,641,113
Average total assets	9,154,190		8,099,435		6,934,286		5,922,941		5,063,253
Average stockholders' equity	3,072,362		2,773,947		2,446,961		2,188,150		1,932,530

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:

	20Y420Y8
Return on total assets	17.6%
Return on stockholders equity	36.6%
Times interest earned	4.6
Ratio of liabilities to stockholders' equity	2.1

Required:

1. Determine the following for the years 20Y4 through 20Y8. Round to one decimal place:

a. Return on total assets:

20Y8	%
20Y7	%
20Y6	%
20Y5	%
20Y4	%

b. Return on stockholders equity:

20Y8	%
20Y7	%
20Y6	%
20Y5	%
20Y4	%

c. Times interest earned:

20Y8
20Y7
20Y6
20Y5
20Y4

d. Ratio of liabilities to stockholders' equity:

20Y8
20Y7
20Y6
20Y5
20Y4