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I have a few questions based on The Consolidated Statement of Comprehensive Income on a company called "Big Rock

Brewery". The questions are;

1.) What is Big Rock's revenue recognition policy?

2.) Is Big Rock profitable? What is "quality of earnings"? Does Big Rock have quality earnings?

3.) I've noticed that net sales revenue has increased in total dollars, but I'm wondering what Big Rock's profitability looks like when factoring out "size" due to growth. 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?

4.)  Earnings Per Share (EPS) is disclosed at the bottom of the Statement of Comprehensive Income. What does this mean? Why was the EPS for 2017 negative?Screenshot (3).png

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