The following selected data were taken from the financial statements of Vidahill Inc. for December 31,20Y7,20Y6, and 20Y5 : \begin{tabular}{lrrr} & \multicolumn{3}{c}{ December 31 } \\ \cline { 2 - 4 } & \multicolumn{1}{c}{20Y7} & \multicolumn{1}{c}{20Y6} & \multicolumn{1}{c}{20Y5} \\ \hline Total assets & $204,000 & $184,000 & $164,000 \\ Notes payable (8\% interest) & 70,000 & 70,000 & 70,000 \\ Common stock & 28,000 & 28,000 & 28,000 \\ Preferred 4\% stock, $100 par & 14,000 & 14,000 & 14,000 \\ (no change during year) & & & \\ Retained earnings & 73,380 & 51,840 & 42,000 \end{tabular} b. The profitability ratios indicate that Vidahill Inc.'s profitability has . Since the rate of return on assets is the return on stockholders' equity in both years, there must be leverage from the use of debt