As Beacon Company controller, you are responsible for informing the board of directors about its financial activities. At the board meeting, you present the following information.
2017 |
2016 |
2015 |
|
Sales trend percent |
147.0% |
135.0% |
100.0% |
Selling expenses to sales |
10.1% |
14.0% |
15.6% |
Sales to plant assets ratio |
3.8 to 1 |
3.6 to 1 |
3.3 to 1 |
Current ratio |
2.9 to 1 |
2.7 to 1 |
2.4 to 1 |
Acid-test ratio |
1.1 to 1 |
1.4 to 1 |
1.5 to 1 |
Inventory turnover |
7.8 times |
9.0 times |
10.2 times |
Accounts receivable turnover |
7.0 times |
7.7 times |
8.5 times |
Total asset turnover |
2.9 times |
2.9 times |
3.3 times |
Return on total assets |
10.4% |
11.0% |
13.2% |
Return on stockholders’ equity |
10.7% |
11.5% |
14.1% |
Profit margin ratio |
3.6% |
3.8% |
4.0% |
After the meeting, the company’s CEO holds a press conference with analysts in which she mentions the following ratios.
2017 |
2016 |
2015 |
|
Sales trend percent |
147.0% |
135.0% |
100.0% |
Selling expenses to sales |
10.1% |
14.0% |
15.6% |
Sales to plant assets ratio |
3.8 to 1 |
3.6 to 1 |
3.3 to 1 |
Current ratio |
2.9 to 1 |
2.7 to 1 |
2.4 to 1 |
Required