NOTE: For this and the remaining questions, you don't have to actually calculate the ratios to answer the questions. However, if you want to calculate ratios, you will need to calculate to at least 2-3 decimal points to be able to arrive at the correct answers.

In Year 1 of the project, how would the proposed inventory management system impact IPGP's Quick Ratio (a good measure of the company's liquidity)?

Would this make the Quick Ratio better or worse?

Increase the Quick Ratio

Decrease the Quick Ratio

Better

Worse

43

In every year of the project, how would the proposed inventory management system impact IPGP's Inventory Turnover?

Would this make the Inventory Turnover better or worse?

Increase the Inventory Turnover

Decrease the Inventory Turnover

Better

Worse

44

Notice all five of the solvency measures in Step 2 would be affected each year of this project. Would the proposed project make the solvency measures better or worse?

Better

Worse

45

Almost all of the profitability measures we used in Step 2 would be affected each year of this project.

Would the proposed project make the Earnings per Share better or worse?

Better

Worse