The Good News and Bad News. A change in any financial ratio can contain good news and bad news. Financial results of 1997 and 1998 have caused the following three ratio values to change:

\section*{Required:}
1. For each ratio, what might be the good news; and what might be the bad news?
2. Create a scenario for the combined changes in the three ratios.

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Ratio 1998 1997 Current ratio 3:1 4.1 Inventory turnover 6 5 Dividend payout... 30% 40%