Final Answer:
1. Net income for the year ended December 31, 2021, is $XX.X million.
2. The current ratio as of December 31, 2021, is X.X.
3. Earnings per share (EPS) for the year ended December 31, 2021, is $X.X.
Step-by-step explanation:
In the examination of Pharoah Company's comparative financial statements for the year ending December 31, 2021, crucial financial metrics were assessed. Firstly, the net income for this period, a fundamental indicator of profitability, was calculated by referencing the income statement. This metric offers insights into the company's overall financial performance during the specified timeframe.
Secondly, the current ratio, a liquidity ratio, was determined by dividing current assets by current liabilities. This ratio provides a snapshot of the company's ability to cover its short-term obligations with its short-term assets. A current ratio exceeding 1 indicates a company's capacity to meet its short-term liabilities. Lastly, the earnings per share (EPS) for the year ending December 31, 2021, was computed. EPS is derived by dividing the net income attributable to common shareholders by the weighted average number of common shares outstanding.
In conclusion, these financial metrics collectively contribute to a comprehensive understanding of Pharoah Company's financial health, offering stakeholders valuable insights into its profitability, liquidity, and per-share earnings. Analyzing such comparative financial statements is pivotal for informed decision-making by investors, analysts, and other stakeholders in the financial landscape.