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JAS Clocks Corp. shows the following data: Year Net Income Total Assets Shareholders' Equity 20XW $110,000 $1,500,000 $ 750,000 20XX 125.000 1,900,000 825,000 20XY 150,000
JAS Clocks Corp. shows the following data: Year Net Income Total Assets Shareholders' Equity 20XW $110,000 $1,500,000 $ 750,000 20XX 125.000 1,900,000 825,000 20XY 150,000 2,400,000 900,000 20XZ 175,000 3,000,000 1,000,000 Total Debt $ 750,000 1,075,000 1,500,000 2,000,000 a. Compute the ratio of net income to total assets for each year and comment on the trend. 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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