Reference no: EM131750668

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.