1. Which do you think provides a more valid measure of how a company is doing, comparison of current results with historical results or comparison of current results with the current results of another company?
2. As of December 31, 20XX, Michael Corp's fixed assets before depreciation were $14,000,000. Its sales for the year were $32,000,000. Its EBIT for 20XX was $1,500,000, and its accumulated depreciation on fixed assets was $4,000,000. What was its fixed assets turnover ratio?
3. Between December 31, 2016 and December 31, 2017, annual sales of Bobcat Industries went from $32,000,000 to $48,000,000. EBIT went from $3,000,000 to $4,600,000. Net income went from $1,500,000 to $2,200,000. Management has asked you to comment.