Solvency and Profitability Trend Analysis Addal Company has provided the following comparative information: 2018 2017 2016 2015 2014 Net income $1,138,400 $981,400 $824,700 $704,900 $597,400 Interest expense 387,100 353,300 305,100 232,600 185,200 Income tax expense 364,288 274,792 230,916 183,274 143,376 Total assets (ending balance) 7,200,864 7,609,816 5,475,478 5,710,660 4,330,584 Total stockholders' equity (ending balance) 2,276,680 2,760,488 1,762,092 2,202,812 1,321,688 Average total assets 7,405,340 6,542,647 5,593,069 4,758,883 4,054,922 Average stockholders' equity 2,518,584 2,261,290 1,982,452 1,762,250 1,547,668 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 20.3% Return on stockholders' equity 42% Times interest earned 4.6 Ratio of liabilities to stockholders' equity 2.1 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: 2018 15.4 X % 2017 15 X % 2016 14.8 X % 2045 14.8 X% 20Y4 14.7 X% b. Return on stockholders' equity: 2018 45.2 % 20Y7 43.4 % 2016 41.6 % 1. Determine the following for the years 2014 through 2048. Round to one decimal place a. Return on total assets: 20Y8 25.5 X % 20Y7 24.6 X % 2016 24.3 X % 2015 23.6 X % 2014 22.8 X %