37585Class – Please answer the following questions in detail
1. Profits might be compared with sales, assets, or stockholders’ equity. Why might all three bases be used? Will trends in these ratios always move in the same direction?
2.What is the advantage of segregating extraordinary items in the income statement?
3. What is return on investment? What are some of the types of measures for return on investment? Why is the following ratio preferred?
4.Herrich Company and Thomas, Inc., are department stores. For the current year, they reported a net income after tax of $400,000 and $600,000, respec- tively. Is Thomas, Inc., a more profitable company than G. Herrich Company? Discuss.
Note: Please provide a heading for each of these items. Your paper should be written in APA Style and be 3 to 4 pages in length. Please include at least three (3) reputable sources.
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