Jodie Foster Care Homes Inc. shows the following data:

a. Compute the ratio of net income to total assets for each year and comment on the trend.
b. Compute the ratio of net income to stockholders’ equity and comment on the trend. Explain why there may be a difference in the trends between parts a andb.

Transcribed Image Text:

Year 2010 2011 2012 2013 Net Income S155,000 191,000 208,000 192,000 Total Assets S2,390,000 2,700,000 2,730,000 2.470,000 Stockholders' Equity S 761,000 966,000 1.770,000 2.220,000 Total Debt S1,629,000 1.734,000 960.000 250,000