3.1.4-1.5 1.6 1.7 1.8 Editing Adobe A 14.1 15 Question 2: (8 marks: 2 marks for each ratio) XYZ specializes in the overnight transportation of medical equipment and laboratory specimens. The company has selected the following information from its most recent annual report to be the subject of an immediate press release and provided the following ratios: 1. The current ratio has changed to 2 from last year's 1.5. (2 marks) 2. The interests' coverage ratio has changed to 5 from last year's 8. (2 marks) 3. The receivable turnover has changed to 8.5 from last year's 6 times. (2 marks) 4. The return on assets ratio has changed to 2.5 from last year to 2.3. (2marks) Required: As financial analyst, you are required to think carefully which information (if any) is good news for the company, and which (if any) is bad news. Assuming that Net income this year was $2.4 million. Last year's net income had been $2.0 million. Solution question 2