Highlander Inc. reported the following selected information for the last three years (in millions, except for per share amounts):

Instructions
(a) Calculate Highlander's return on equity, earnings per share, and price-earnings ratios before and aft er discontinued operations for 2014, 2013, and 2012.
(b) Evaluate Highlander's performance over the last three years before and after discontinued operations.
(c) Explain how reporting discontinued operations separately would affect your analysis of Highlander's performance.
Taking It Further
Why is it important that discontinued operations be reported separately only if the operations qualify as a component of an entity?

2014 2013 $3,100 2,400 2012 $2,600 1,800 15 Net sales Average shareholders' equity Preferred dividends Profit from continuing operations Loss on disposal of discontinued operations Loss from discontinued operations Profit Weighted average number of common shares Market price per share $4,000 3,400 20 $1,160 340 110 $ 710 300 $45.50 20 810 570 80 S 730 290 $33.65 70 500 280 $44.80