Interpretation of Financial Ratios
Pecunious Products, Inc.'s financial results for the past three years are summarized below:
Your boss has asked you to review these results and then answer the following questions:
a. Is it becoming easier for the company to pay its bills as they come due?
b. Are customers paying their accounts at least as fast now as they were in Year 1?
c. Is the total of the
d. Is the level of inventory increasing, decreasing, or remaining constant?
e. Is the market price of the company's stock going up or down?
f. Is the earnings per share increasing or decreasing?
g. Is the price-earning ratio going up or down?
Required:
Provide answers to each of the questions raised by your boss.
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Introduction To Managerial Accounting
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