Question:
Quantum Moving Company has the following data. Industry information also is shown.
Company Data
| year |
Net Income |
Total Assets |
Industry Data on Net Income/ total Assets |
| 2008 |
$350,000 |
$2,800,000 |
11.5%
|
| 2009 |
$375,000 |
3,200,000 |
8.4
|
| 2010 |
375,000 |
3,750,000 |
5.5
|
|
|
|
|
| year |
Debt |
Total Assets |
Imdustry Data on Debt/total Assets |
| 2008 |
1,624,000 |
2,800,000 |
54.1%
|
| 2009 |
$1,730,000 |
3,200,000 |
42.0
|
| 2010 |
1,900,000 |
3,750,000 |
33.4
|
As an industry analyst comparing the firm to the industry, are you likely to praise or criticize the firm in terms of:
a. Net income/Total assets.
b. Debt/Total assets.