View the step-by-step solution to:

As Baldwin Company controller, you are responsible for informing the board of directors about its financial activities. At the board meeting, you...

This question was answered on Jan 14, 2013. View the Answer
See my attachment
As Baldwin Company controller, you are responsible for informing the board of directors about its financial activities. At the board meeting, you present the following information. 2011 2010 2009 Sales trend percent 147.0% 135.0% 100.0% Selling expenses to sales 10.1% 14.0% 15.6% Sales to plant assets ratio 3.8 to 1 3.6 to 1 3.3 to 1 Current ratio 2.9 to 1 2.7 to 1 2.4 to 1 Acid-test ratio 1.1 to 1 1.4 to 1 1.5 to 1 Inventory turnover 7.8 times 9.0 times 10.2 times Accounts receivable turnover 7.0 times 7.7 times 8.5 times Total asset turnover 2.9 times 2.9 times 3.3 times Return on total assets 10.4% 11.0% 13.2% Return on stockholder’s equity 10.7% 11.5% 14.1% Profit margin ratio 3.6% 3.8% 4.0% After the meeting, the company’s CEO holds a press conference with analysts I which she mentions the following ratios. 2011 2010 2009 Sales trend percent 147.0% 135.0% 100.0% Selling expenses to sales 10.1% 14.0% 15.6% Sales to plant assets ratio 3.8 to 1 3.6 to 1 3.3 to 1 Current ratio 2.9 to 1 2.7 to 1 2.4 to 1 1. Why do you think the CEO decided to report 4 ratios instead of the 11 prepared? 2. Comment on the possible consequences of the CEOs reporting of the ratios selected.
Background image of page 1
Sign up to view the entire interaction

Top Answer

Hi Enclosed... View the full answer

8420290_Solution.docx

1. Why do you think the CEO decided to report 4 ratios instead of the 11 prepared?
The CEO has decided to report 4 ratios in the press conference, instead of 11 prepared, as
these are the ratios...

This question was asked on Jan 14, 2013 and answered on Jan 14, 2013.

Recently Asked Questions

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors and customizable flashcards—available anywhere, anytime.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access or to earn money with our Marketplace.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
  • -

    Flashcards

    Browse existing sets or create your own using our digital flashcard system. A simple yet effective studying tool to help you earn the grade that you want!

    Browse Flashcards