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1,000 0 -0.4 +ableau -0.3 -02 -01 0.0 0.1 0.2 Required 1 03 Net Income/Stockholders' Equity Required 2 0.4 0.5 0.6 Required: 1. The graph

1,000 0 -0.4 +ableau -0.3 -02 -01 0.0 0.1 0.2 Required 1 03 Net Income/Stockholders' Equity Required 2 0.4 0.5 0.6 Required: 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? 0.7 ev KE & TO 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 (e 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 perlod? 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)? Required 3 Re

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