FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
6th Edition
ISBN: 9781618533111
Author: DYCKMAN
Publisher: Cambridge Business Publishers
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Chapter 1, Problem 48CP

a.

To determine

Compute the return on equity ratio for company J and company S for the year 2017 and indicate the company that earned a higher return for its shareholders.

b.

To determine

Compute the debt-to-equity ratio for company J and company S as of December 31, 2017 and indicate the company that relies more on creditor financing.

c.

To determine

Compute the net income as a percentage of revenue in 2017 for both companies.

d.

To determine

Compare the ratios of both competitors and indicate the cause for the differences in the ratios.

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Financial ratio analysis; Author: The Finance Storyteller;https://www.youtube.com/watch?v=MTq7HuvoGck;License: Standard Youtube License