The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 20Y7, 20Y6, and 20Y5: Line Item Description December 31 20Y7 December 31 20Y6 December 31 20Y5 Total assets $333,000 $300,000 $267,000 Notes payable (8% interest) 110,000 110,000 110,000 Common stock 44,000 44,000 44,000 Preferred 7% stock, $100 par (no change during year) 22,000 22,000 22,000 Retained earnings 116,085 87,480 66,000 The 20Y7 net income was $30,145, and the 20Y6 net income

The 20Y7 net income was $30,145, and the 20Y6 net income was $23,020. No dividends on common stock were declare and 20Y7. Preferred dividends were declared and paid in full in 20Y6 and 20Y7. a. Determine the return on total assets, the return on stockholders' equity, and the return on common stockholders' equ 20Y6 and 20Y7. When required, round your answers to one decimal place. b. The profitability ratios indicate that the company's profitability has . Since the return on assets is the return on stockholders' equity in both years, there must be leverage from the use