1.The balance sheet information for Clorox Co. (CLX) in 2004–2005 is shown here, with data in $ thousands:
a. What change in the book value of Clorox’s equity took place at the end of 2004?
b. Is Clorox’s market-to-book ratio meaningful? Is its book debt-equity ratio meaningful? Explain.
c. Find online Clorox’s other financial statements from that time. What was the cause of the change to Clorox’s book value of equity at the end of 2004?
d. Does Clorox’s book value of equity in 2005 imply that the firm is unprofitable? Explain.