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Suppose you are conducting an analysis of the financial performance of Cold Goose Metal Works Inc over the past three years The company did not

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Suppose you are conducting an analysis of the financial performance of Cold Goose Metal Works Inc over the past three years The company did not issue new shares during these three years, and has faced some operational difficulties The company has thus pilot tested some new forecasting strategies for better operations management. You have collected the company's relevant financial data, made reasonable assumptions based on the information available, and calaulated the following ratios. Ratios Calculated Year 1 Year 2 Year 3 Price to cash low 2.60 3.38 3.79 Inventory turnover 5.20 624 6.99 Debt to equity 0.50 0.53 0.64 Based on the preceding information, your calculations, and your assumptions, which of the fllowing statements can be included in your analysis report? Check all that apply The market value of Cold Goose Metal Works Inc.'s common shares dedined over the three years. Cold Goose Metal Works Inc.'s ablity to meet its debt obligations has worsened since its debt-to-equity ratio increased from 0.50 to 0.64 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. The company's creditworthiness has improved over these three years as evidenaed by the increase in its debt-to-equity ratio over time. 5

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