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Profitability Ratios The following selected data were taken from the financial statements of Vidahill Inc. for...

Question:

Profitability Ratios The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 2

Profitability Ratios The following selected data were taken from the financial statements of Vidahill Inc. for December 31, 2017, 2016, and 20Y5: December 31 2017 2016 2015 Total assets $244,000 $220,000 $196,000 Notes payable (8% interest) 80,000 80,000 80,000 Common stock 32,000 32,000 32,000 Preferred 6% stock, $100 par 16,000 16,000 16,000 (no change during year) Retained earnings 83,360 59,840 48,000 The 2017 net income was $24,480, and the 2016 net income was $12,800. No dividends on common stock were declared between 2015 and 20Y7. Preferred dividends were declared and paid in full in 2046 and 2017 a. Determine the return on total assets, the rate earned on stockholders' equity, and the return on common stockholders' equity for the years 2016 and 2047. When required, round to one decimal place. 2017 2016 Return on total assets % % Return on stockholders' equity % Return on common stockholders' equity % b. The profitability ratios indicate that Vidahill Inc.'s profitability has . Since the rate of return on assets is both years, there must be the return on stockholders' equity in leverage from the use of debt. Assignment Score: 55.66% Email Instructor Save and Exit Submit Assignment for Grading Retun on total Assets. Net Income Interest Expense Ablage Hot Assets

Answers

A В C D E FORMULA RATIO TARGET WALMART 1 Return on Total assets EBIT 13.31% 9.23% Average Assets EBIT (Net Income Interest) N

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