Jolie Foster Care Homes Inc. shows the following data:

Year Net Income Total

Assets Stockholders'

Equity Total Debt

20X1 $ 138,000 $ 2,280,000 $ 959,000 $ 1,321,000

20X2 153,000 2,110,000 1,114,000 996,000

20X3 185,000 2,440,000 1,520,000 920,000

20X4 228,000 2,680,000 1,950,000 730,000

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?

(Click to select) Strong upward movement Strong downward movement No significant change

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?

(Click to select) Strong downward movement Strong upward movement