Need on part (A) Transcribed Image Text: Trend Analysis Critelli Company has provided the following comparative information: Year 5 Year 4 Year 3 Year 2 Year 1 Net income $1,352,800

Need on part (A) Transcribed Image Text: Trend Analysis
Critelli Company has provided the following comparative information:
Year 5
Year 4
Year 3
Year 2
Year 1
Net income
$1,352,800
$1,166,200
$980,000
$837,600
$709,800
Interest expense
460,000
419,800
362,600
276,400
220,000
Income tax expense
432,896
326,536
274,400
217,776
170,352
Average total assets
9,960,440
8,811,111
7,542,697
6,439,306
5,501,775
Average stockholders’ equity
3,340,247
3,013,437
2,655,827
2,372,805
2,093,805
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
17.9 %
Return on stockholders’ equity
37.3 %
Times interest earned
4.6
Instructions:
Calculate three ratios for Year 1 through Year 5. Round to one decimal place. Transcribed Image Text: Instructions:
Calculate three ratios for Year 1 through Year 5. Round to one decimal place.
a. Return on total assets:
Year 5
Year 4
Year 3
Year 2
Year 1

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