Question: 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.
![2133_2011.png](https://secure.tutorsglobe.com/CMSImages/2133_2011.png)
After the meeting, the company's 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
Required: 1. Why do you think the CEO decided to report 4 ratios instead of the 11 prepared?
2. Comment on the possible consequences of the CEO's reporting of the ratios selected.