Jolie 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 and b.

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Net Income $155,000 191,000 208,000 192,000 Total AssetsStockholders' Equity Year 20X1 20X2 20X3 20X4 $2,390,000 2,700,000 2,730,000 2,470,000 S 761,000 966,000 1,770,000 2,220,000 Total Debt $1,629,000 1,734,000 960,000 250,000