Compute four ratios that measure the ability to earn profits for
Exercise 17-19 (E17-19)
Compute four ratios that measure the ability to earn profits for
Bonaparte, Inc., whose comparative income statement follows. 2004 data
are given as needed.
AND SO ON
Did the companyâs operating performance improve or deteriorate during 2006? (pp. 864â866)
Include the following sections in your analysis, and fully explain your final decision.
1. Trend analysis for net sales and net income (use 2001 as the base year)
2. Profitability analysis
3. Measuring ability to sell inventory (WRS uses the LIFO method)
4. Measuring ability to pay debts
5. Measuring dividends
