Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Foundations of Financial Management

Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen

16th edition

125927716X, 978-1259687969, 1259687961, 978-1259277160

More Books

Students also viewed these Accounting questions

Question

Explain the differences between HTTP and HTTPS .

Answered: 1 week ago

Question

=+a. At least one plant is completed by the contract date.

Answered: 1 week ago