Yoar Nat income Aoes 20001 Equity 192,000 1O00 $146000 1845,000 1 0,000 89000 28
ID: 2813487 • Letter: Y
Question
Yoar Nat income Aoes 20001 Equity 192,000 1O00 $146000 1845,000 1 0,000 89000 283000 1,900,000 10.co0 2t003 19600 2.74000 -1.Compute thhe raño of net income to toal assels for each year (input your answers as a parcent rounded to 2 decinal places Year Return on 20x a whata he trend in te net icome to total assets ratio? Stong upward movement b-1. Compute the ratio of net inoome to stockholders equity for each year, (input your answers as a percent rounded to 2 decimal places.) 20x 20X4 b-2. What is the tend in the net inceme to stookhalders equity atio? Sthong upward movementExplanation / Answer
1)
Net income to total assets = (Net income / total asstes) * 100
2021:
Net income to total assets = ( 192,000 / 1,970,000 ) * 100 = 9.75%
2022:
Net income to total assets = ( 221,000 / 2,460,000) * 100 = 8.98%
2023:
Net income to total assets = ( 196,000 / 2,740,000 ) * 100 = 7.15%
2024:
Net income to total assets = ( 189,000 / 2,830,000 ) * 100 = 6.68%
2)
Strong downward movement
3)
Net income to stockholders equity = ( net income / stockholders equity) * 100
2021:
Net income to stockholders = ( 192,000 / 1,460,000 ) * 100 = 13.15%
2022:
Net income to stockholders = ( 221,000 / 1,845,000) * 100 = 11.98%
2023:
Net income to stockholders = ( 196,000 / 1,910,000 ) * 100 = 10.26%
2024:
Net income to stockholders = ( 189,000 / 1,900,000 ) * 100 = 9.95%
4)
Strong downward movement
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