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Suppose you are conducting an analysis of the finandal performance of Fuzzy Button Clothing Company over the past three years. The company did not issue
Suppose you are conducting an analysis of the finandal performance of Fuzzy Button Clothing Company over the past three years. The company did not issue new shares during these three years and has faced some operational difficultes. The company has thus plot tested some new forecasting strategies for better operations manogement. You have collected the company's relevant financial data, made reasonable assumptions based on the information avaliable, and calculated the following ratios. Based on the preceding informatian, your calculations, and your assumptions, which of the following statements can be included in your analysis report? Check all that apply. A plausible reason why Fuzry button Closhing Company's price-to-cash-fow ratio has decreased is that investors expect lower cash flow per share in the future. Furry Eutton Cothing Company's ability to meet its debt obligations has improved since its debt-to-equity ratio decreased from 0.60 to 0.38 . A decline in the inventory turnover ratio could likely be explained by operational difficultes that the company faced, which fed to duplicate orders placed to vendors. A decline in the inventory turnover ratio can be explained by the new inventory management system that the compary recently adopted, which led to more efficlent inventory management
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