Question: You have been provided with the financial statements for Francy Closet for the last three years. Francy is concerned that her net income has been decreasing, and she has employed you to provide a thorough analysis that will explain what is causing this drop in net income. You are also requested to make suggestion for the future. As part of your analysis, you are expected to:
[A] Compute ratios for the last two years (2005 and 2006).
(a) Interest Coverage Ratio
(B) Profit Margin