Reference no: EM133023044

Problem - 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.