Question 1 a) Explain why trend analyses are helpful in analyzing ratios. b) John Little Sports Inc. shows the following data: Year 2011 2012 Net Income $155,000 191,000 208,000 192,000 Total Assets $2,390,000 2,700,000 2,730,000 2,470,000 Stockholders' Equity 1 $ 761,000 966,000 1,770,000 2,220,000 Debt $1,629,000 1,734,000 960,000 250,000 2013 2014 ii. iii. iv. Compute the return on assets (investment) ratio for each year and comment on the trend (changes over the years). Compute the return on equity ratio and comment on the trend. Compute the debt to total assets ratio and comment on the trend. Explain why there may be a difference in the trends between parts , ii and