Reference no: EM132955641

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.

Problem a. Determine the return on total assets, the return on stockholders' equity, and the return on common stockholders' equityfor the years 20Y6 and 20Y7.