Question
Jodie Foster Care Homes Inc. shows the following data: Year Net Income Total Assets Stockholders' Equity Total Debt 20X1 $ 200,000 $ 2,520,000 $ 1,550,000
Jodie Foster Care Homes Inc. shows the following data:
Year Net Income Total
Assets Stockholders'
Equity Total Debt 20X1 $ 200,000 $ 2,520,000 $ 1,550,000 $ 970,000 20X2 189,000 2,630,000 1,710,000 920,000 20X3 137,000 2,120,000 1,470,000 650,000 20X4 132,000 2,270,000 1,650,000 620,000
a-1. Compute the ratio of net income to total assets for each year. (Input your answers as a percent rounded to 2 decimal places.)
a-2. What is the trend in the net income to total assets ratio?
Strong upward movementStrong downward movement
b-1. Compute the ratio of net income to stockholders' equity for each year. (Input your answers as a percent rounded to 2 decimal places.)
b-2. What is the trend in the net income to stockholders' equity ratio?
Strong upward movementStrong downward movement
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started