Part D 1) Mr. Beckham the owner of Adidos Company is puzzled. His company had a profit margin of 25% in the year 2020. He feels that this is an indication that the company is doing well. Ms. Susan, his accountant, says that more information is needed to determine the company's financial well-being. Who is correct? Why? (4 marks) 2) Holding all other factors constant, indicate whether each of the following changes generally signals good or bad news about the company? Why? a) Increase in profit margin. b) Decrease in inventory turnover. c) Increase in current ratio. d) Increase in debt to asset ratio. e) Decrease in times interest earned (10 marks) (Total: 100 marks) End of page