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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

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