Van DeKamp Company has provided the following comparative information:

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:
2004–2008
Rate earned on total assets ....... 13%
Rate earned on stockholders' equity .... 20%
Number of times interest charges earned .. 4.0
Ratio of liabilities to stockholders' equity .. 1.3

Instructions
1. Prepare four line graphs with the ratio on the vertical axis and the years on the horizontal axis for the following four ratios (rounded to one decimal place):
a. Rate earned on total assets
b. Rate earned on stockholders' equity
c. Number of times interest charges earned
d. Ratio of liabilities to stockholders' equity
Display both the company ratio and the industry benchmark on each graph. That is, each graph should have two lines.
2. Prepare an analysis of the graphs in(1).

2008 2007 2006 2005 2004 Net income Interest expense Income tax expense $1,815,000 $1,200,000 900,000 600,000 450,000 271,800 234,000 202,500 162,000 135,000 157,500 420,000 315,000 210,000 Total assets (ending bal) 9,035,000 6,800,000 5,250,000 3,900,000 3,000,000 Total stockholders' equity (ending balance) Average total assets 6,015,000 4,200,000 3,000,000 2,100,000 1,500,000 7,917,500 6,025,000 4,575,000 3,450,000 2,700,000 Average stockholders' equity 5,107,500 3,600,000 2,550,000 ,800,000 1,350,000