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

Instructions

a. Calculate All Care?s return on equity, earnings per share, and price-earnings ratios before and after discontinued operations for 2021, 2020, and 2019.

b. Evaluate All Care?s performance over the past three years before and after discontinued operations.

Taking It Further

How would reporting discontinued operations affect your analysis of All Care?s performance?

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2019 2021 2020 Sales and operating revenues Average shareholders' equity 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 $24,900 2,400 $20,300 $23,800 1,900 $ 1,250 620 990 $ 1,130 200 180 150 $ 430 $ 980 810 470 460 450 $ 24.40 $ 19.88 $ 21.60