The Blue Water Eatery has the following information for 20X1—20X3:

20X1 20X2 20X3 Current Ratio iVe2, eS at A/R turnover 15 16 iby Asset turnover 2 Dail 2.2 Profit margin 7% 7.5% 8%

EPS $2.20 $2.30 $2.40 PE 11 12 13 Equity multiplier a pa a Required:
1. Comment on the firm’s changing liquidity across the three-year period. 2. What is the firm’s share price at the end of 20X3?
3. What is the firm’s ROA for 20X2?
4. What is the firm’s ROE for 20X3?
5. Comment on the firm’s changing profitability across the three-year period.