Reproduced on the following page are portions of the president's letter to shareholders and selected income statement

Question:

Reproduced on the following page are portions of the president's letter to shareholders and selected income statement and balance sheet data for the Wright Brothers Aviation Company. Wright Brothers is a national airline that provides both passenger service and package delivery service.

Required:

1. What trends do you detect in revenues, operating income, and net income for the period 2005-2009?

2. What happened to the difference between current assets and current liabilities over the 2005-2009 period? To what do you attribute this result?

3. The price of Wright Brothers stock declined steadily throughout the 2005-2009 period. Do you consider this decline to be a reasonable reaction to the financial results reported? Why or why not?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...