BTN 13-1 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. 2020 2019 2018 Sales trend percent Selling expenses to sales 147.0% 10.1% 135.0% 100.0% 14.0% 15.6% Sales to plant assets ratio 3.8 to 1 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 1.1 to 1 1.4 to 1 1.5 to 1 Inventory turnover 7.8 times 9.0 times 10.2 times Accounts receivable turnover 7.0 times 7.7 times 8.5 times Total asset turnover 2.9 times 2.9 times 3.3 times Return on total assets 10.4% 11.0% 13.2% Return on stockholders' equity 10.7% 11.5% 14.1% Profit margin ratio 3.6% 3.8% 4.0% Page 526 After the meeting, the company's CEO holds a press conference with analysts in which she mentions the following ratios. 2020 2019 2018 Sales trend percent Selling expenses to sales Sales to plant assets ratio Current ratio 147.0% 135.0% 100.0% 10.1% 14.0% 15.6% 3.8 to 1 3.6 to 1 3.3 to 1 2.9 to 1 2.7 to 1 2.4 to 1 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.