Based on the balance sheet, Is the market price of the company’s stock going up or down? Explain.

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 76E
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Based on the balance sheet, Is the market price of the company’s stock going up or down? Explain. 

YR 3 (2021) YR 2 (2020) YR 1 (2019)
CURRENT RATIO
2.8
2.5
2.0
ACID TEST RATIO
0.7
0.9
1.2
ACCOUNTS RECEIVABLE TURNOVER
8.6
9.5
10.4
INVENTORY TURNOVER
5.0
5.7
6.8
SALES TREND
130.0
118.0
100.0
2.50 $
2.50 $
4%
DIVIDENDS PAID PER SHARE
$
2.50
DIVIDENDS YIELD RATIO
5%
3%
DIVIDEND PAYOUT RATIO
40%
50%
60%
RETURN ON TOTAL ASSETS
13.0%
11.8%
10.4%
RETURN ON COMMON STOCKHOLDERS' EQUITY
16.2%
14.5%
9.0%
Transcribed Image Text:YR 3 (2021) YR 2 (2020) YR 1 (2019) CURRENT RATIO 2.8 2.5 2.0 ACID TEST RATIO 0.7 0.9 1.2 ACCOUNTS RECEIVABLE TURNOVER 8.6 9.5 10.4 INVENTORY TURNOVER 5.0 5.7 6.8 SALES TREND 130.0 118.0 100.0 2.50 $ 2.50 $ 4% DIVIDENDS PAID PER SHARE $ 2.50 DIVIDENDS YIELD RATIO 5% 3% DIVIDEND PAYOUT RATIO 40% 50% 60% RETURN ON TOTAL ASSETS 13.0% 11.8% 10.4% RETURN ON COMMON STOCKHOLDERS' EQUITY 16.2% 14.5% 9.0%
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