Solvency and Profitability Trend Analysis Addai Company has provided the following comparative information: 2048 2017 Net income $273,406 $367,976 2016 $631,176 2015 $884,000 2014 $800,000 Interest expense 616,047 572,003 528,165 495,000 440,000 Income tax expense 31,749 53,560 106,720 160,000 200,000 Total assets (ending balance) Total stockholders' equity (ending balance) 4,417,178 3,706,557 4,270,764 3,569,855 4,124,350 3,433,152 3,928,396 3,249,164 3,732,443 3,065,176 3,535,472 2,749,588 3,338,500 2,434,000 3,044,250 1,992,000 2,750,000 1,550,000 2,475,000 1,150,000 Average total assets Average total stockholders' equity You have been asked to evaluate the historical performance of the company over the last five years. Selected industry ratios have remained relatively steady at the following levels for the last five years: 2014-2018 Return on total assets 28% Return on stockholders' equity 18% Times interest earned 2.7 Ratio of liabilities to stockholders' equity 0.4 Required: 1. Determine the following for the years 2014 through 2048 for each of the graphs below. Use the amounts given above in your calculations. Round to one decimal place: a. Return on total assets: 60.0% 50.0% Retum on Total Assets 0% 20.0% 10.0% 0.0% 2018 2017 20Y6. 2015 20Y4 Year Company's return on total assets Industry return on total assets + 2048 2017 2016 20YS 2014 b. Return on stockholders' equity: 80.0% 70.0% 60.0% 50.0% Return on Stockholders' Equity 40.0% 30.0% 20.0% 10.0% 0.0% 2018 2047 20Y6 20Y5 2014 Year Company's return on stockholders' equity Industry return on stockholders' equity + 20Y8 2017 2046 2015 2014 c. Times interest earned: Times Interest Eamed Ratio 20Y8 2017 20Y6 20Y5 2044 Year Company's times interest earned +Industry times interest earned 20Y8 2017 2016 2015 2014 d. Ratio of liabilities to stockholders' equity: Ratio of Liabilities to Stockholders' Equity 20Y8 2017 2046 2045 2044 Year + Company's liabilities to equity Industry liabilities to equity 2048 2017 2016 2015 2014