The following selected data were taken from the financial statements of Robinson Inc. for December 31, 2014, 2013 and 2012
The following selected data were taken from the financial statements of Robinson Inc. for December 31, 2014, 2013 and 2012:.cengagenow.com/ilrn/books/waac25h/images/ch17/waac25h_ch17_ex17_17.gif”>The 2014 net income was $372,000, and the 2013 net income was $492,000. No dividends on common stock were declared between 2012 and 2014.a.Determine the rate earned on total assets, the rate earned on stockholders’ equity, and the rate earned on common stockholders’ equity for the years 2013 and 2014. Round to one decimal place.20142013Rate earned on total assets%%Rate earned on stockholders’ equity%%Rate earned on common stockholders’ equity%%b.The profitability ratios indicate that Robinson Inc.’s profitability has SelectimproveddeterioratedItem 7 . Since the rate of return on assets is Selectgreater thanless thanItem 8 the change in net income in both years, there must be SelectpositivenegativeItem 9 leverage from the use of debt.
