from your opinion how to evaluate the profitability of the company ?

ZETA CORPORATION Notes to Consolidated Financial Statements (S thousands) Notel: Change in accounting principle During 2011 the company broadened its definition of overhead costs to be included in the determination of inventories to more properly match costs with revenues. The effect of the change in 2011 is to increase income from continuing operations by $400. The adjustment of $1,000 (after reduction for income taxes of $1,000) for the cumulative effect for prior years is shown in the net income for 20 Note 2: Inventories Inventories are priced at cost (principally last-in, first-out [LIFO] method of determination) not in excess of replacement market. If the first-in, first-out (FIFO) method of inventory accounting had been used, inventories would have been S6,000 and $4,500 higher than reported at December 31, 2011 and December 1, 2010 respectively. Note 3: Acquisition of TRO Company Effective December 31, 2011, the company purchased most of the outstanding common stock of TRO Company for $8,000 in cash. The excess of the acquisition cost over fair value of the net assets acquired $2,000 will be recorded as goodwill and not amortized. The following unaudited supplemental pro forma information shows the condensed results of operations as though TRO Company had been acquired as of January 1, 2010