Solvency and Profitability Trend Analysis

Itzkoff Company has provided the following comparative information:

	2016		2015		2014		2013		2012
Net income	$1,352,000		$1,165,500		$979,400		$837,100		$709,400
Interest expense	459,700		419,600		362,400		276,200		219,900
Income tax expense	432,640		326,340		274,232		217,646		170,256
Total assets (ending balance)	9,399,341		9,977,129		7,159,087		7,505,393		5,691,590
Total stockholders' equity (ending balance)	2,943,160		3,604,056		2,297,210		2,898,546		1,739,128
Average total assets	9,688,235		8,568,108		7,332,240		6,254,494		5,340,805
Average stockholders' equity	3,273,608		2,950,633		2,597,878		2,318,837		2,044,380

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:

	20122016
Rate earned on total assets	18.4%
Rate earned on stockholders' equity	38.1%
Number of times interest charges are earned	4.6
Ratio of liabilities to stockholders' equity	2.1

Required:

1. Determine the following for the years 2012 through 2016. Round to one decimal place:

a. Rate earned on total assets:

2016	%
2015	%
2014	%
2013	%
2012	%

b. Rate earned on stockholders' equity:

2016	%
2015	%
2014	%
2013	%
2012	%

c. Number of times interest charges are earned:

2016
2015
2014
2013
2012

d.

Ratio of liabilities to stockholders' equity

:

2016
2015
2014
2013
2012