As Baldwin Company controller, you are responsible for informing the board of

As Baldwin Company controller, you are responsible for informing the board of directors about its financial activities. At the board meeting, you present the
following information. 2011 2010 2009 Sales trend percent 147.0% 135.0% 100.0% Selling expenses to sales 10.1% 14.0% 15.6% Sales to plant assets ratio 3.8 to 1 3.6
to 1 3.3 to 1 Current ratio 2.9 to 1 2.7 to 1 2.4 to 1 Acid-test ratio 1.1 to 1 1.4 to 1 1.5 to 1 Inventory turnover 7.8 times 9.0 times 10.2 times Accounts
receivable turnover 7.0 times 7.7 times 8.5 times Total assets turnover 2.9 times 2.9 times 3.3 times Return on total assets 10.4% 11.0% 13.2% Return on
stockholders equity 10.7% 11.5% 14.1% Profit margin ratio 3.6% 3.8% 4.0% After the meeting, the companys CEO holds a press conference with analysts in which she
mentions the following ratios. 2011 2010 2009 Sales trend percent 147.0% 135.0% 100.0% Selling expenses to sales 10.1% 14.0% 15.6% Sales to plant assets ratio 3.8
to 1 3.6 to 1 3.3 to 1 Current ratio 2.9 to 1 2.7 to 1 2.4 to 1 1. Why do you think the CEO decided to report ratios instead of the 11 prepared? 2. Comment on the
possible consequences of the CEOs reporting of the ratios selected.