Question Content Area Trend Analysis Critelli Company has provided the following comparative information: ...

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Accounting

Question Content Area
Trend Analysis
Critelli Company has provided the following comparative information:
Year 5 Year 4 Year 3 Year 2 Year 1
Net income $1,087,200 $937,200 $787,600 $673,200 $570,500
Interest expense 369,600337,400291,400222,200176,900
Income tax expense 347,904262,416220,528175,032136,920
Average total assets 6,591,8555,820,0914,972,3504,223,5853,593,269
Average stockholders' equity 2,255,6022,019,8281,765,9191,565,5811,371,394
You have been asked to evaluate the historical performance of the company over the last five years.
Selected industry ratios have remained relatively steady at the following levels for the last five years:
Industry Ratios
Return on total assets 21.8%
Return on stockholders' equity 45%
Times interest earned 4.6
Instructions:
Calculate three ratios for Year 1 through Year 5. Round to one decimal place.
a. Return on total assets:
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