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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 $973,500 $839,200 $705,200
Trend Analysis Critelli Company has provided the following comparative information: Year 5 Year 4 Year 3 Year 2 Year 1 Net income $973,500 $839,200 $705,200 $602,700 $510,800 Interest expense 331,000 302,100 260,900 198,900 158,300 Income tax expense 311,520 234,976 197,456 156,702 122,592 Average total assets 7,287,709 6,448,023 5,520,571 4,715,294 4,030,723 Average stockholders' equity 2,452,141 2,214,248 1,953,463 1,746,957 1,543,202 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: Industry Ratios Return on total assets 17.6 % Return on stockholders' equity 36.5 % 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 % Year 3 % Year 2 % Year 1 % b. Return on stockholders' equity: Year 5 % Year 4 % Year 3 % Year 2 % Year 1 % C Times interest earned. c. Times interest earned: Year 5 Year 4 Year 3 lllll Year 2 Year 1
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