As Beacon Company controller, you are responsible for informing the board of directors about its financialactivities. At the board meeting, you present the following information.

After the meeting, the company’s CEO holds a press conference with analysts in which she mentions the following ratios.

Required

1. Why do you think the CEO decided to report 4 ratios instead of the 11 prepared?

2. Comment on the possible consequences of the CEO’s reporting of the ratios selected.

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2019 2018 2017 Sales trend percent . 147.0% 135.0% 100.0% 10.1% 14.0% Selling expenses to sales. 15.6% 3.8 to 1 Sales to plant assets ratio 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.. 1.4 to 1 1.1 to 1 1.5 to 1 10.2 times Inventory turnover 7.8 times 9.0 times 8.5 times Accounts receivable turnover 7.0 times 7.7 times 3.3 times Total asset turnover 2.9 times 2.9 times Return on total assets.. 11.0% 10.4% 13.2% Return on stockholders' equity 10.7% 11.5% 14.1% Profit margin ratio.. 3.6% 3.8% 4.0% 2019 2018 2017 Sales trend percent .. Selling expenses to sales. Sales to plant assets ratio Current ratio . 135.0% 14.0% 147.0% 100.0% 10.1% 15.6% 3.8 to 1 2.9 to 1 3.6 to 1 2.7 to 1 3.3 to 1 2.4 to 1