JAS Clocks Corp. shows the following data:

a. Compute the ratio of net income to total assets for each year and comment on the trend.
b. Compute the ratio of net income to shareholders' equity and comment on the trend. Explain why there may be a difference in the trends between parts a and b.

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Shareholders' equity $ 750,000 Year Total assets Total debt Net income $ 750,000 $110,000 $1,500,000 1,900,000 2011 2012 125,000 825,000 1,075,000 1,500,000 2013 150,000 2,400,000 900,000 1,000,000 2014 175,000 3,000,000 2,000,000