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

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Accounting

9.

Profitability Ratios

The following selected data were taken from the financialstatements of Vidahill Inc. for December 31, 20Y7, 20Y6, and20Y5:

December 31
20Y720Y620Y5
Total assets$220,000$198,000$176,000
Notes payable (8% interest)70,00070,00070,000
Common stock28,00028,00028,000
Preferred 3% stock, $100 par14,00014,00014,000
(no change during year)
Retained earnings79,08055,15042,000

The 20Y7 net income was $24,350, and the 20Y6 net income was$13,570. No dividends on common stock were declared between 20Y5and 20Y7. Preferred dividends were declared and paid in full in20Y6 and 20Y7.

a. Determine the return on total assets, thereturn on stockholders' equity, and the return on commonstockholders’ equity for the years 20Y6 and 20Y7. Round percentagesto one decimal place.

20Y720Y6
Return on total assets%%
Return on stockholders’ equity%%
Return on common stockholders’ equity%%

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