=+P9-5 Solvency and profitability trend analysis Objs 2, 3 Shore Company has provided the following comparative information:

2008 _ 2007 2006 2005 2004 Net income $ 42,000 $ 70,000 $ 140,000 $ 210,000 $ 210,000 Interest expense 142,800 133,000 119,000 112,000 105,000 Income tax expense 12,600 21,000 42,000 63,000 63,000 Total assets (ending balance) 2,240,000 2,100,000 1,890,000 1,680,000 1,400,000 Total stockholders’

equity (ending balance) 812,000 770,000 700,000 560,000 350,000 Average total assets Average stockholders’

2,170,000 1,995,000 1,785,000 1,540,000 1,260,000 equity 791,000 735,000 630,000 455,000 315,000