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Jolie Foster Care Homes Inc. shows the following data: Year Net Income Total Assets Stockholders' Equity Total Debt 20X1 $ 138,000 $ 2,650,000 $ 796,000

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Jolie Foster Care Homes Inc. shows the following data:

Year Net Income Total Assets Stockholders' Equity Total Debt
20X1 $ 138,000 $ 2,650,000 $ 796,000 $ 1,854,000
20X2 140,000 2,300,000 1,284,000 1,016,000
20X3 160,000 2,280,000 1,500,000 780,000
20X4 255,000 2,640,000 2,510,000 130,000

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 movement

  • Strong 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 downward movement

  • Strong upward movement

Jolie Foster Care Homes Inc. shows the following data: Net Total Stockholders' Year Income Assets Equity Total Debt 20x1 $139,000 $2,650,000 $ 796,000 $1,854,000 20x2 140,000 2,300,000 1,284,000 1,016,000 20x3 160,000 2,280,000 1,500,000 780,000 20x4 255,000 2,640,000 2,510,000 130,000 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.) Year Return on Assets % 20X1 20x2 20x3 % % 20X4 a-2. What is the trend in the net income to total assets ratio? Strong upward movement Strong 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.) Year Return on Stockholders' Equity % % 20X1 20X2 20x3 20X4 b-2. What is the trend in the net income to stockholders' equity ratio? Strong downward movement Strong upward movement

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