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Price-to-cash-flow Ratios Calculated Year 1 Year 2 1.00 Inventory turnover 2.00 Debt-to-equity 0.30 1.30 2.40 0.32 Year 3 1.46 2.69 0.38 Based on the preceding
Price-to-cash-flow Ratios Calculated Year 1 Year 2 1.00 Inventory turnover 2.00 Debt-to-equity 0.30 1.30 2.40 0.32 Year 3 1.46 2.69 0.38 Based on the preceding information, your calculations, and your assumptions, which of the following statements can be included in your analysis report? Check all that apply. An improvement in the inventory turnover ratio could likely be explained by the new sales-forecasting strategies that led to better inventory management. The market value of Cold Goose Metal Works Inc.'s common shares declined over the three years. Cold Goose Metal Works Inc.'s ability to meet its debt obligations has worsened since its debt-to-equity ratio increased from 0.30 to 0.38. A plausible reason why Cold Goose Metal Works Inc.'s price-to-cash-flow ratio has increased is that investors expect higher cash flow per share in the future.
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