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Jolie Foster Care Homes Incorporated shows the following data: Year 20X1 Net Income $ 130,000 Total Assets $ 2,330,000 Stockholders' Equity $ 1,795,000 Total
Jolie Foster Care Homes Incorporated shows the following data: Year 20X1 Net Income $ 130,000 Total Assets $ 2,330,000 Stockholders' Equity $ 1,795,000 Total Debt $ 535,000 20X2 143,000 2,050,000 1,587,000 463,000 20X3 207,000 2,740,000 1,790,000 950,000 20X4 200,000 2,160,000 540,000 31 1,620,000 a-1. Compute the ratio of net income to total assets for each year. Note: Input your answers as a percent rounded to 2 decimal places. Year Return on Assets 20X1 5.58% 20X2 6.98 % 20X3 7.55% 20X4 9.26% es a-2. What is the trend in the net income to total assets ratio? Strong downward movement Strong upward movement b-1. Compute the ratio of net income to stockholders' equity for each year. Note: 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 upward movement Strong downward movement
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