Jodie Foster Care Homes Inc shows the following data a1 Comp

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

Solution

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