Answer these questions:

1. Why do you think the CEO decided to report 4 ratios instead of the 11 prepared? (13 points)

2. Which of the 11 ratios put the company in a positive light? Which ones cast the company in a negative light? How so? Explain what the ratios mean in your response. (20 points)

3. Comment on the possible consequences of the CEO's reporting of the ratios selected. (12 points)

4. If you were the CEO, would you have done anything differently? (10 points)

Complete, original, well-thought out answers will receive full credit.

2. Which company retains a higher portion of cumulative net income in the company? 3. hich company has a higher gross margin ratio on sales? inventory? 4. hich company holds a higher percent of its total assets as BTN Beacon Company controller, you are responsible for informing the board of directors ET about its financial the board meeting, you present the following information. A1 activities. At 201 I 2012 2013 35.0% 47.0% Sales trend percent 5.6% Selling expenses to sales 3.3 to 3.6 to 3.8 to Sales to plant assets ratio 2.4 to 2.7 to 2.9 to Current ratio Acid-test ratio 9.0 times 0.2 times 7.8 times Inventory turnover 8.5 times 7.7 times 7.0 times Accounts receivable turnover 3.3 times 2.9 times 2.9 times Total asset turnover 3.2% 0.4% Return on total assets ,5%, Return on stockholders' equity. 3,6% Profit margin ratio Chapter 17 Analysis of Financial Statements After the meeting, company'sCEo holds a press conference with analysts in which she mentions the the following ratios 2012 2013 47.0% 135.0% 100.0% Sales trend percent 14.0% 15.6% Selling expenses to sales 3.3 to 3.6 to 3.8 to Sales to plant assets ratio 2.4 to 2.7 to Current ratio Required of the 11 prepared? 1. Why do you think the CEO decided to report 4 ratios instead 2. Comment on the possible consequences of the CEO's reporting of the ratios selected. BTN 17.4 Each team is to select a different industry, and each team member is to select a different cor pany in that industry and acquire its financial statements. Use those statements to analyze the compa including at least one ratio from each of the four building blocks of analysis. When necessary, use