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.

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 ratiosselected.

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2009 2008 2007 Sales trend percent 135.0% 14.0% 100.0% 15.6% 147.076 3.6 to I 2.7 to I 1.4 to I 3.3 to I 2.4 to l 1.5 to I Sales to plant assets ratio ..^.P...-3.8 to I Current ratio.. Acld-test ratlo 9.-... Inventory turnover .. -7.8 times 9.0 times0.2 tmes Accounts recelvable turnover 7.0 tlmes 7.7 times 8.5 times Total asset turnover . ..-._......... 2.9 times 2.9 tmes 3.3 times 2.9 to l 1.I to I Return on stockholders' equity Proflt margin ratlo. 10.7% 3.6% 1 1.0% ! 1.5% 3.8% 13.2% 14.1% 4,0% 2009 2008 2007 Sales trend percent.. 147.0% 135.0% 100.0% Selling expenses to sales 10.1% 14.0% 15.6% Sales to plant assets rato3.8 to 3.6 to 3.3 to I 2.9 to 2.7 to 2.4 to I Current ratio