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The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 2017, 2076, and 20Y5: December 31 2017 2016 2015
The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 2017, 2076, and 20Y5: December 31 2017 2016 2015 Total assets $ 163,000 $147,000 $131,000 Notes payable (8% interest) 50,000 50,000 50,000 Common stock 20,000 20,000 20,000 Preferred 7% stock, $100 par 10,000 10,000 10,000 (no change during year) Retained earnings 60,400 38,200 30,000 The 20Y7 net income was $22,900, and the 2016 net income was $8,900. 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 2017. Round percentages to one decimal place. 2017 2016 Return on total assets % % Return on stockholders' equity % % Return on common stockholders' equity % % Since the rate of return on assets is the return on stockholders' b. The profitability ratios indicate that the company's profitability has equity in both years, there must be leverage from the use of debt
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