Reference no: EM133023937
Question - Profitability Ratios - The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 20Y7, 20Y6, and 20Y5:
December 31 20Y7 20Y6 20Y5
Total assets: $295,000 $266,000 $237,000
Notes payable (8% interest): 100,000 100,000 100,000
Common stock: 40,000 40,000 40,000
Preferred 5% stock, $100 par: 20,000 20,000 20,000 (no change during year)
Retained earnings: 108,030 74,150 60,000
The 20Y7 net income was $34,880, and the 20Y6 net income was $15,150. No dividends on common stock were declared between 20Y5 and 20Y7. Preferred dividends were declared and paid in full in 20Y6 and 20Y7.
Required - Determine the return on total assets, the return on stockholders' equity, and the return on common stockholders' equityfor the years 20Y6 and 20Y7. Round percentages to one decimal place.
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