Pecunious Products, Inc.'s financial results for the past three years are summarized below: Year 3 Year...

 

Transcribed Image Text:

Pecunious Products, Inc.'s financial results for the past three years are summarized below: Year 3 Year 2 Year 1 Sales trend 179.2 161 140 Current ratio 3.5 3.22 3.08 Acid-test ratio 1.12 1.26 1.54 Accounts receivable turnover 13.16 14.84 17.5 Inventory turnover 9.1 10.08 11.2 Dividend yield 9.9% 9.1% 8.1% Dividend payout ratio 56% 70% 84% Dividends paid per share $1.50 $1.50 $1.50 *There have been no changes in common stock outstanding over the three-year period. Your boss has asked you to review these results and then answer the following questions: a. Is it becoming easier for the company to pay its bills as they come due? (4 points) b. Are customers paying their accounts at least as fast now as they were in Year 1? (4 points) c. Is the level of inventory increasing, decreasing, or remaining constant? (4 points) Pecunious Products, Inc.'s financial results for the past three years are summarized below: Year 3 Year 2 Year 1 Sales trend 179.2 161 140 Current ratio 3.5 3.22 3.08 Acid-test ratio 1.12 1.26 1.54 Accounts receivable turnover 13.16 14.84 17.5 Inventory turnover 9.1 10.08 11.2 Dividend yield 9.9% 9.1% 8.1% Dividend payout ratio 56% 70% 84% Dividends paid per share $1.50 $1.50 $1.50 *There have been no changes in common stock outstanding over the three-year period. Your boss has asked you to review these results and then answer the following questions: a. Is it becoming easier for the company to pay its bills as they come due? (4 points) b. Are customers paying their accounts at least as fast now as they were in Year 1? (4 points) c. Is the level of inventory increasing, decreasing, or remaining constant? (4 points)