The Consolidated Statement of Comprehensive Income

$6.$ What is Big Rock's revenue recognition policy?

$7.$ Is Big Rock profitable? What is "quality of earnings"? Does Big Rock have quality earnings?

$8.$ I've noticed that net sales revenue has decreased in total dollars, but I$\text{'}$m wondering what Big Rock's profitability looks like when factoring out "size" due to growth and shrinkage. I've heard profitability ratios can allow for this. Could you calculate & explain the following ratios to me$?$

a$.$ Gross Margin Ratio

b$.$ Profit Margin Ratio

c$.$ Return on Equity

d$.$ Return on Assets

Are the trends favorable or unfavorable? Why? What reasons could have accounted for these changes?

Note to Students: In part $8,$ please use ending balances for equity and assets instead of average balances. Will assist in student consistency

$9.$ Earnings Per Share $($EPS$)$ is disclosed at the bottom of the Statement of Comprehensive Income. What does this mean? Why was the EPS negative?