Question
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
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?
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Strong upward movement
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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
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