20Υ7 20Y6 20Y5 20Y4 Net income $1,120,400 $965,900 $811,700 $693,800 $588,000 Interest expense 380,900 347,700 300,300 229,000 182,300 Income tax expense 358,528 270,452 227,276 180,388 141,120 Total assets (ending balance) 6,308,280 6,633,962 4,788,646 4,965,740 3,765,686 Total stockholders' equity (ending balance) 2,021,243 2,424,789 1,550,109 1,918,695 1,151,217 Average total assets 6,471,121 5,711,304 4,877,193 4,138,117 3,517,352 Average stockholders' equity 2,223,016 1,987,449 1,734,402 1,534,956 1,342,466 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:

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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20Y8
20Υ7
20Υ6
20Y5
20Υ4
Net income
$1,120,400
$965,900
$811,700
$693,800
$588,000
Interest expense
380,900
347,700
300,300
229,000
182,300
Income tax expense
358,528
270,452
227,276
180,388
141,120
Total assets (ending balance)
6,308,280
6,633,962
4,788,646
4,965,740
3,765,686
Total stockholders' equity (ending balance)
2,021,243
2,424,789
1,550,109
1,918,695
1,151,217
Average total assets
6,471,121
5,711,304
4,877,193
4,138,117
3,517,352
Average stockholders' equity
2,223,016
1,987,449
1,734,402
1,534,956
1,342,466
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:
20Y4-20Y8
Return on total assets
22.9%
47.2%
Return on stockholders' equity
4.6
Times interest earned
2.1
Ratio of liabilities to stockholders' equity
Required:
1. Determine the following for the years 20Y4 through 20Y8. Round to one decimal place:
a. Return on total assets:
17.76 X %
20Y8
Previour
Transcribed Image Text:20Y8 20Υ7 20Υ6 20Y5 20Υ4 Net income $1,120,400 $965,900 $811,700 $693,800 $588,000 Interest expense 380,900 347,700 300,300 229,000 182,300 Income tax expense 358,528 270,452 227,276 180,388 141,120 Total assets (ending balance) 6,308,280 6,633,962 4,788,646 4,965,740 3,765,686 Total stockholders' equity (ending balance) 2,021,243 2,424,789 1,550,109 1,918,695 1,151,217 Average total assets 6,471,121 5,711,304 4,877,193 4,138,117 3,517,352 Average stockholders' equity 2,223,016 1,987,449 1,734,402 1,534,956 1,342,466 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: 20Y4-20Y8 Return on total assets 22.9% 47.2% Return on stockholders' equity 4.6 Times interest earned 2.1 Ratio of liabilities to stockholders' equity Required: 1. Determine the following for the years 20Y4 through 20Y8. Round to one decimal place: a. Return on total assets: 17.76 X % 20Y8 Previour
b. Return on stockholders' equity:
20Y8
% X 0
% X2
20Y6
X 087
20Y5
22.30
20Y4
X 06 T
C. Times interest earned:
20Y8
X88
4.56 X
20Y6
4.46 X
20Y5
4.82
20Y4
A/00
d. Ratio of liabilities to stockholders equity:
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Transcribed Image Text:b. Return on stockholders' equity: 20Y8 % X 0 % X2 20Y6 X 087 20Y5 22.30 20Y4 X 06 T C. Times interest earned: 20Y8 X88 4.56 X 20Y6 4.46 X 20Y5 4.82 20Y4 A/00 d. Ratio of liabilities to stockholders equity: Check My Work All work saved. a. %23 | 直 2)
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