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The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 2017, 2016, and 20YS: December 31 December 31
The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 2017, 2016, and 20YS: December 31 December 31 December 31 20Y7 20Y6 20Y5 Total assets $321,000 $289,000 $257,000 Notes payable (8% interest) 110,000 110,000 110,000 Common stock 44,000 44,000 44,000 Preferred 5% stock, $100 par (no change during year) 22,000 22,000 22,000 Retained earnings 120,950 81,200 66.000 < The 2017 net income was $40,850, and the 2016 net income was $16,300. Na dividends on common stock were declared between 2015 and 2017. Preferred dividends were declared and paid in full in 2016 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. When required, round your answers to one decimal place. 2017 2016 Return on total assets % Return on stockholders' equity % % Return on common stockholders' equity % % b. The profitability ratios indicate that the company's profitability has Improved is less than the return on stockholders' equity in both years, there must be positive Since the return on assets leverage from the use of debt.
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