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The following selected data were taken from the financial statements or Vidahill Inc. for December 31, 2017, 2016, and 2045: December 31 2017 2016 2015

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The following selected data were taken from the financial statements or Vidahill Inc. for December 31, 2017, 2016, and 2045: December 31 2017 2016 2015 Total assets $206,000 $186,000 $166,000 Notes payable (8% interest) 70,000 70,000 70,000 Common stock 28,000 28,000 28,000 Preferred 3% stock, $100 par 14,000 14,000 14,000 (no change during year) Retained earnings 72,200 52,180 42,000 The 2017 net income was $20,440, and the 2016 net income was $10,600. No dividends on common stock were declared between 2015 and 2047. Preferred dividends were declared and paid in full in 20Y6 and 2017 a. Determine the return on total assets, the return on stockholders' equity, and the return on common stockholders equity for the years 2016 and 20Y7. Round percentages to one decimal place, 2017 2016 Return on total assets % Return on stockholders' equity 9 % Return on common stockholders' equity b. The prontability ratios indicate that the company's profitability has improved Since the rate of return on total assets is less than return on stockholders' equity in both years, there must be positive v leverage from the use of debt the

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