Question: As Baldwin Company controller, you are responsible for informing the board of directors about its financial activities. At the board meeting, you present the following

As Baldwin Company controller, you are responsible for informing the board of directors about its financial activities. 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.

As Baldwin Company controller, you are responsible for informing

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 ratiosselected.

2010 147.0% 135.0% 100.0% 10.1% 14.0% 15.6% 3.8 to 3.6 to 3.3 to 2.9 to 27 to2.4 to l 2011 2009 Selling expenses to sales Sales to plant assets ratio

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