Tobellco, a manufacturer of construction equipment is considering the purchase of one of its suppliers, ACE Industries. The purchase has been given preliminary approval by Tobellco$$s Board of Directors, and several discussions have taken place between the management of both companies. ACE has submitted financial data for the past several years. Tobellco$$s controller has analyzed ACE$$s financial statements and prepared the following ratio analysis comparing ACE$$s performance with the industry averages.

Year $3$ Year $2$ Year $1$ Industry Average

Return on common stockholders' equity $13\mathrm{.}0313\mathrm{.}0212\mathrm{.}9812\mathrm{.}96$

Average sales period $51\mathrm{.}1647\mathrm{.}2942\mathrm{.}1538\mathrm{.}63$

Times interest earned $3\mathrm{.}873\mathrm{.}463\mathrm{.}283\mathrm{.}56$

Price earnings ratio $10\mathrm{.}9611\mathrm{.}2311\mathrm{.}3911\mathrm{.}54$

Debt to equity ratio $0\mathrm{.}50\mathrm{.}460\mathrm{.}480\mathrm{.}57$

Accounts receivable turnover $6\mathrm{.}987\mathrm{.}257\mathrm{.}837\mathrm{.}78$

Current ratio $1\mathrm{.}651\mathrm{.}951\mathrm{.}72\mathrm{.}3$

Dividend yield ratio $2\mathrm{.}082\mathrm{.}062\mathrm{.}122\mathrm{.}25$

Required: Using the information provided above for ACE Industries:

A$.$ Identify the two ratios from the above list that would be of most interest to short$-$term creditors.

Explain what these two ratios measure. What do these two ratios indicate to Tobellco Inc.?

B$.$ Identify the three ratios from the above list that would be of most interest to stockholders.

Explain what these three ratios measure. What do these three ratios indicate about Tobellco Inc.?

C$.$ C$.$ Identify the two ratios from the above list that would be of most interest to long$-$term creditors.

Explain what these two ratios measure. What do these two ratios indicate about Tobellco Inc.?