PROBLEM 8–1 At a meeting of your company’s Investment Policy Committee the possibility of investing in ZETA Corporation (see Case CC-2 in the Comprehensive Case chapter) is considered. During discussions, a committee member asked about the major factors explaining the change in ZETA Corporation’s income from Year 5 to Year 6.

Required:

Analyze variations in income and income components for ZETA Corporation that compares Year 6 to Year 5. Analyze and interpret your results. (Hint: ZETA’s notes are useful for this purpose.)