In your position as controller of Tallman Inc., you are responsible for keeping the board of directors informed about the financial activities and status of the company. At the board meeting, you present the following report:

After the meeting is over, you overhear the company€™s CEO holding a press conference with analysts in which she mentions the following ratios:

Required
1. Why do you think the CEO decided to report four ratios instead of the full eleven that you prepared?
2. Comment on the possible consequences of the CEO€™sdecision.

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2014 Net sales trend Selling expenses to net sales Net sales to PPE assets Current ratio Acid-test ratio Merchandise turnover... Accounts receivable turnover... Total asset turnover Return on total assets Return on equity Profit margin 2013 135.00 14.0% 3.6 to 1 2.7 to 1 1.4 to 1 9.0 times 7.7 times 2012 100.00 15.6% 3.3 to 1 2.4 to 1 1.5 to 1 10.2 times 8.5 times 3.3 times 10.4% 12.25% 4.0% 147.00 10.1% 3.8 to 1 2.9 to 1 1.1 to 1 7.8 times 7.0 times 2.9 times 2.9 times 9.1% 9.75% 11 .50% 3.8% 2013 135.00 14.0% 3.6 to 1 2.7 to 1 2012 100.00 15.6% 3.3 to 1 2.4 to 1 2014 Net sales trend Selling expenses to net sales. Net sales to PPE assets... 10.1% 3.8 to 1 2.9 to 1