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d. Suppose Barry had doubled its sales as well as its inventories, accounts receivable, and common equity during 2019. How would that information affect the

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d. Suppose Barry had doubled its sales as well as its inventories, accounts receivable, and common equity during 2019. How would that information affect the validity of your ratio analysis? (Hint: Think about averages and the effects of rapid growth on ratios faverages are not used. No calculations are needed.) 1. 1 2019 represents a period of supernormal growth for the firm, ratios based on this year will be distorted and a comparison between them and industry averages will have substantial meaning. Potential investors who look only at 2019 ratios will be well informed, and a return to normal conditions in 2020 could hurt the firm's stock price. 11. If 2019 represents a period of supernormal growth for the firm, ratios based on this year will be distorted and a comparison between them and Industry averages will have little meaning, Potential investors who look only at 2019 ratios will be misted, and a return to normal conditions in 2020 could hurt the firm's stock price III. 1 2019 represents a period of supernormal growth for the firm, ratios based on this year will be accurate and a comparison between them and industry averages will have substantial meaning, Potential investors need only look at 2019 ratlos to be well informed, and a return to normal conditions in 2020 could help the firm's stock price. IV. If 2019 represents a period of normal growth for the firm, ratios based on this year will be distorted and a comparison between them and Industry averages will have little meaning. Potential investors who took only at 2019 ratios will be misled, and a continuation of normal conditions in 2020 could hurt the firm's stock price. V. I 2019 represents a period of normal growth for the firm, ratios based on this year will be accurate and a comparison between them and industry averages will have substantial meaning. Potential investors who look only at 2019 rates will be misted, and a return to supernormal conditions in 2020 could hurt the firm's stock price III Check My Work (1 remaining)

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