Question: Rhondda McNabb always asks her advisor in-depth questions before acquiring a companys shares. Rhondda is currently considering investing in Simpson Corp. Simpsons annual report contains

Rhondda McNabb always asks her advisor in-depth questions before acquiring a company€™s shares. Rhondda is currently considering investing in Simpson Corp. Simpson€™s annual report contains the following summary of ratios:

Rhondda McNabb always asks her advisor in-depth questions before acquiring

Rhondda would like answers to the following questions about the trend of events over the three-year period covered in the annual report. Rhondda€™s questions are:
1. Is it becoming easier for Simpson to pay its current debts on time and to take advantage of cash discounts?
2. Is Simpson collecting its accounts receivable more rapidly?
3. Is Simpson€™s investment in accounts receivable decreasing?
4. Are dollar amounts invested in inventory increasing?
5. Is Simpson€™s investment in PPE assets increasing?
6. Is the shareholders€™ investment becoming more profitable?
7. Is Simpson using its assets efficiently?
8. Did the dollar amount of selling expenses decrease during the three-yearperiod?

2013 11 7.00% 13.7% 1.1 to 1 2.4 to 1 8.7 times 7.4 times 11.50% 3.5% 3.0 times 9.4% 3.5 to 1 2012 100.00% 15.3% 1.2 to 1 2.1 to 1 9.9 times 8.2 times 12.25% 2014 128.0090 9.8% Net sales trend 9.75% Return on equity Profit margin 3.3% 3.1 times 10.1% 3.3 to 1 8.8% Return on total assets

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