Pecunious Products, Inc.'s financial results for the past three years are summarized below: Your boss has asked

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Pecunious Products, Inc.'s financial results for the past three years are summarized below:
Pecunious Products, Inc.'s financial results for the past three years

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 accounts receivable increasing, decreasing, or remaining constant?
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-earnings ratio going up or down?
h. Is the company employing financial leverage to the advantage of the common stockholders?
Required:
Provide answers to each of the questions raised by your boss.

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Related Book For  book-img-for-question

Introduction to Managerial Accounting

ISBN: 978-0078025792

7th edition

Authors: Peter Brewer, Ray Garrison, Eric Noreen

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