BTN 13-7 Assume that David and Tom Gardner of The Motley Fool (Fool.com e) have
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BTN 13-7 Assume that David and Tom Gardner of The Motley Fool (Fool.com e) have impressed you since you first heard of their rather improbable rise to prominence in financial circles. You learn of a staff opening at The Motley Fool and decide to apply for it. Your resume is successfully screened from the thousands received and you advance to the interview process. You learn that the interview consists of analyzing the following financial facts and answering analysis questions below. (The data are taken from a small merchandiser in outdoor recreational equipment.) 2013 1000% 15.3% Salo trend 1370% 98% 1250% 13.7% tosi Acid-cest ratio Accounts receivable tuoe Ratum on total ns 2.6times 24s 30 m 11 1% 12.25% 975% 13% 11S0% 15% Page 553 Required these data to answer each of the following questions with explanations ? Explain.Explanation / Answer
5. No, the owner's investment is not becoming more profitable. The owner's investment is represented by equity. As per the given data, return on equity has declined from 12.25% to 9.75% between 2013 and 2015.
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