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Trend Analysis Critelli Company has provided the following comparative information: Year 5 Year 4 Year 3 Year 2 Year 1 Net income $1,249,600 $1,077,200 $905,200
Trend Analysis Critelli Company has provided the following comparative information: Year 5 Year 4 Year 3 Year 2 Year 1 Net income $1,249,600 $1,077,200 $905,200 $773,700 $655,700 Interest expense 424,900 387,800 334,900 255,300 203,300 Income tax expense 399,872 301,616 253,456 201,162 157,368 Average total assets 7,936,019 7,009,569 5,990,821 5,094,059 4,338,384 Average stockholders' equity 2,710,629 2,431,603 2,129,882 1,891,687 1,660,000 You have been asked to evaluate the historical performance of the company over the last ve years. D Selected industry ratios have remained relatively steady at the following levels for the last ve years: Industry Ratios Return on total assets 20.8 % Return on stockholders' equity 42.9 "/0 Times interest earned 4.6 Instructions: Calculate three ratios for Year 1 through Year 5. Round to one decimal place. a. Return on total assets: Year 5 % Year 4 % Calculate three ratios for Year 1 through Year 5. Round to one decimal place. a. Return on total assets: Year 5 l: % Year 4 [:] % Year 3 C] % Year 2 l: % Year 1 [:] % b. Return on stockholders' equity: Year 5 [:] % D mm :11\
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