3. A company's current year net income (after income tax) is 25% larger than that of the preceding year. Does this indicate improved operating performance? Why? 4. How would the current and quick ratios of a service business compare? 5. a. Why is a high inventory turnover considered to be a positive indicator? b. Is it possible to have a high inventory turnover and a high days' sales in inventory? Why? 6. What do the following data, taken from a comparative balance sheet, indicate about the company's ability to borrow additional long-term debt in the current year as compared to the preceding year? 7. a. How does the return on total assets differ from the return on stockholders' equity? b. Which ratio is normally higher? Why? 8. The Kroger Company (KR), a grocery store chain, recently had a price-earnings ratio of 13.2, while the average price-earnings ratio in the grocery store industry was 17.0. What might explain this difference? 9. The dividend yield of Suburban Propane Partners, L.P. (SPH) was 10.2\% in a recent year, and the dividend yield of Alphabet Inc. (GOOG) was 0% in the same year. What might explain the difference between these ratios? 10. Describe two reports provided by independent auditors in the annual report to shareholders