Question: Following are the financial statements of Western Forest Resources for 1980 and 1979 (in 000s):
(a) Calculate all the ratios defined in this chapter, for both 1979 and 1980.
(b) Prepare common-size financial statements for 1979 and 1980.
(c) Comment on any significant changes in the firm's position and performance. How would such changes affect your view of Western as:
(i) A common shareholder;
(ii) A preferred shareholder or bondholder;
(iii) Western's chief executive officer. Bear in mind that, in general, economic conditions for 1980 were: (1) Start of a recession
(2) Record high rates of inflation and interest.