Suppose you are conducting an analysis of green penguin ice company’s past three years’ performance. green penguin did not issue new shares during these three years and has faced some operational difficulties. the company has thus piloted some new forecasting strategies to improve its operations management. you have collected the relevant data, made reasonable assumptions based on the information available, and calculated the following ratios. ratios calculated: year 1 year 2 year 3price to cash flow 6.80 4.76 3.81inventory turnover 13.60 10.88 8.70debt to equity 0.60 0.48 0.38
1. based on the preceding information, your calculations, and your assumptions, which of the following statements can be included in your analysis report. check all that apply.(a) a plausible reason why green penguin’s price-to-cash-flow ratio has decreased is that investors expect lower cash flow per share in the future.(b) a decline in the inventory turnover ratio can be explained by the new inventory management system that the company recently adopted, which led to more efficient inventory management.(c) a decline in the debt-to-equity ratio implies a decline in the creditworthiness of the firm.(d) a decline in the inventory turnover ratio could likely be explained by operational difficulties that the company faced, which led to duplicate orders placed to vendors.

During january 2018, the following transactions occur: january 1 purchase equipment for $20,600. the company estimates a residual value of $2,600 and a five-year service life. january 4 pay cash on accounts payable, $10,600. january 8 purchase additional inventory on account, $93,900. january 15 receive cash on accounts receivable, $23,100 january 19 pay cash for salaries, $30,900. january 28 pay cash for january utilities, $17,600. january 30 firework sales for january total $231,000. all of these sales are on account. the cost of the units sold is $120,500. the following information is available on january 31, 2018. depreciation on the equipment for the month of january is calculated using the straight-line method. the company estimates future uncollectible accounts. at the end of january, considering the total ending balance of the accounts receivable account as shown on the general ledger tab, $4,100 is now past due (older than 90 days), while the remainder of the balance is current (less than 90 days old). the company estimates that 50% of the past due balance will be uncollectible and only 3% of the current balance will become uncollectible. record the estimated bad debt expense. accrued interest revenue on notes receivable for january. unpaid salaries at the end of january are $33,700. accrued income taxes at the end of january are $10,100