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. 1. The graph displays, for more than 148,000 company-years, each company's net income divided by total stockholders' equity. By what name is this
. 1. The graph displays, for more than 148,000 company-years, each company's net income divided by total stockholders' equity. By what name is this ratio known? 2. Select the statement that appropriately explains why the graph suggests evidence of earnings management. 3. Using the filter options in the upper right corner of the Tableau dashboard, select the "pre-SOX" years (ie., 1985-2001) to alter the graph to show the number of companies reporting ratios prior to the implementation of SOX. a. How many companies reported a ratio near zero (red bar) in the pre-SOX period? b. How many companies reported a ratio near -0.015 in the pre-SOX period? c. How many companies reported a ratio near +0.015 in the pre-SOX period? d. Divide your answer in 3a by the total of your answers to 3a-3c. What fraction of the companies in 3a-3c reported a ratio near zero (red bar)? 4. Using the filter options in the upper right corner of the Tableau dashboard, select the "post-SOX" years (e., 2003-2017) to alter the graph to show the number of companies reporting ratios after the implementation of SOX. a. How many companies reported a ratio near zero (red bar) in the post-SOX period? b. How many companies reported a ratio near -0.015 in the post-SOX period? c. How many companies reported a ratio near +0.015 in the post-SOX period? d. Divide your answer in 4a by the total of your answers to 4a-4c. What fraction of the companies in 4a-4c reported a ratio near zero (red bar)? e. Do your answers in 3d and 4qsuggest SOX encouraged a greater proportion of companies to honestly report near-zero earnings? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Using the filter options in the upper right corner of the Tableau dashboard, select the "post-SOX" years (ie, 2003-2017) to alter the graph to show the number of companies reporting ratios after the implementation of SOX. (Round "Fraction of the companies" answer to 3 decimal places.) a Number of companies reported ratio near zero (red bar) in the post-SOX period. b. Number of companies reported ratio near -0.015 in the post-SOX period. Number of companies reported ratio near +0.015 in the post-SOX period 1,600 O 1,800 O 1,900 5.330 Do your answers in 3d and 4d suggest SOX encouraged a greater proportion of companies to honestly report near-zero eamings? Yes d Fraction of the companies reported ratio near zero (red bar)
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