The first part of the case, presented in the previous chapter, discussed the situation of Computron Industries after an expansion program. A large loss occurred rather than the expected profit. As a result, its managers, directors, and investors are concerned about the firms survival.

Jenny Cochran was brought in as assistant to Computrons chairman, who had the task of getting the company back into a sound financial position. Cochran must prepare an analysis of where the company is now, what it must do to regain its financial health, and what actions to take. Your assignment is to help her answer the following questions, using the recent and projected financial information shown next. Provide clear explanations, not yes or no

G. Perform a common size analysis (Vertical Analysis) and percent change analysis (Horizontal Analysis). What do these analyses tell you about Computron?

\begin{tabular}{|lrrr|} \hline Per Share Information & & & Projection \\ EPS & 2018 & 2019 & 2020E \\ \cline { 2 - 4 } DPS & $3.69 & $2.64 & $3.90 \\ Book Value Per Share & $0.90 & $0.84 & $1.00 \\ & $27.30 & $29.10 & $32.00 \\ \hline \end{tabular}