The following selected data were taken from the financial statements of Vidahill Inc. for December $31,20$Y$7,20$Y$6,$ and $20$Y$5$:

Line Item Description December $31$

$20$Y$7$ December $31$

$20$Y$6$ December $31$

$20$Y$5$

Total assets $$239,000$ $$215,000$ $$191,000$

Notes payable $(8\%$ interest$)80,00080,00080,000$

Common stock $32,00032,00032,000$

Preferred $5\%$ stock, $$100$ par

$($no change during year$)16,00016,00016,000$

Retained earnings $97,65065,59048,000$

The $20$Y$7$ net income was $$32,860,$ and the $20$Y$6$ net income was $$18,390.$ No dividends on common stock were declared between $20$Y$5$ and $20$Y$7.$ Preferred dividends were declared and paid in full in $20$Y$6$ and $20$Y$7.$

a$.$ Determine the return on total assets, the return on stockholders' equity, and the return on common stockholders$$ equity for the years $20$Y$6$ and $20$Y$7.$ When required, round your answers to one decimal place.

Line Item Description $20$Y$720$Y$6$

Return on total assets fill in the blank $1$

$\%$ fill in the blank $2$

$\%$

Return on stockholders' equity fill in the blank $3$

$\%$ fill in the blank $4$

$\%$

Return on common stockholders$$ equity fill in the blank $5$

$\%$ fill in the blank $6$

$\%$

b$.$ The profitability ratios indicate that the company's profitability has fill in the blank $1$ of $3$

$.$ Since the return on assets is fill in the blank $2$ of $3$

the return on stockholders' equity in both years, there must be fill in the blank $3$ of $3$

leverage from the use of debt.