Selected ratios for Pitka Corporation are as follows:
2020 2019 2018
Working capital $10,000 $25,000 $35,000
Current ratio 1.1:1 1.2:1 1.2:1
Debt to total assets 34.2% 42.3% 40.0%
Earnings per share $3.50 $3.15 $3.40
Price-earnings ratio 5.7 times 5.1 times 5.5 times

Instructions
a) Identify if the change in each value or ratio is an improvement or deterioration between (1) 2018 and 2019, and (2) 2019 and 2020.

b) Briefly discuss the change in Pitkas liquidity, solvency, and profitability over the three-year period.

If the firms pays 13% for its negotiated financing, by how much, if anything could it increase its annual profit as a result of the change in the part (b).

Critically interpret the component of CCC.

Answer rating: 100% (QA)

I wiking Capitul 2019 2020 2013 loo00 25U0 35000 3 CR 12... View the full answer