Jodie Foster Care Homes Inc. shows the following data: a-1. Compute the ratio of

Question

Jodie Foster Care Homes Inc. shows the following data:

  

     
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.)
  

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 Net Income Total
Assets Stockholders'
Equity Total Debt 20X1 $ 136,000 $ 2,000,000 $ 761,000 $ 1,239,000 20X2 188,000 2,530,000 998,000 1,532,000 20X3 183,000 2,100,000 870,000 1,230,000 20X4 273,000 2,160,000 1,220,000 940,000

Explanation / Answer

a-1 Year Return on Assets 20X1 6.80% =136000/2000000 20X2 7.43% =188000/2530000 20X3 8.71% =183000/2100000 20X4 12.64% =273000/2160000 b-1 Year Return on Stockholders' Equity 20X1 17.87% =136000/761000 20X2 18.84% =188000/998000 20X3 21.03% =183000/870000 20X4 22.38% =273000/1220000

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