Question: c. For the most significant changes (25% or more). look at the other ratios and cite at least one other change that may have contributed



c. For the most significant changes (25% or more). look at the other ratios and cite at least one other change that may have contributed to the change in the ratio that you are discussing The average collection period decreased by -26.29%. This could be because: (Select the best answer below.) the accounts receivable decreased due to lower sales. there has been a change in credit terms there has been quicker collection all of the above. The total asset tumover has increased by 42.86%. This could be because: (Select the best answer below.) sales have increased. total assets have decreased C neither of the above. in the And The debt ratio has increased by 37.78%. This could be because: (Select the best answer below.) A. there is a decrease in assets. B. there is an increase in debt. neither of the above. D. both A and B. The return on total assets has increased by 39.66%. This could be because: (Select the best answer below.) A. the earnings available for common stockholders has increased. OB, total assets have decreased XC current assets have decreased. *. all of the above The return on common equity has increased by 101.90%. This could be because: (Select the best answer below.) A common stock equity has decreased. B. the earnings available for common stockholders has increased. C. retained earnings have decreased. D. all of the above. (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) 2019 Home Health, Inc. Financial Ratios Ratio 2018 Current ratio 3.25 Quick ratio 2.50 Inventory turnover 12.80 Average collection period 42.6 days Total asset turnover 1.40 Debt ratio 0.45 Times interest earned ratio 4.00 Gross profit margin 68% Operating profit margin 14% Net profit margin 8.3% Return on total assets 11.6% Return on common equity 21.1% Pricelearnings ratio 10.7 Market/book ratio 1.40 3.00 2.20 10.30 31.4 days 2.00 0.62 3.85 65% 16% 8.1% 16.2% 42.6% 9.8 1.25
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