Cora initiated a new collection period of 90 days same as


Cora’s Candy Emporium, Inc., has been in business for 5 years. Below are selected financial ratios for 2014-2015. You are required to answer the following 4 questions found directly after the financial ratio data set. Will Cora be happy with the direction that the current ratio has gone since 2014? Why or why not? Effective January 1, 2015, Cora initiated a new collection period of 90 days same as cash. She wants her collection period to reflect the industry averages? Will Cora be pleased with the 2015 results of her new policy? Explain. Last week at the stockholders’ meeting, they discussed the return on common equity. Do you think the stockholders were pleased with the results? Why or why not? Would you recommend Cora’s Candy Emporium board of director’s authorized a dividend on the common stock this year? Why or why not?

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Financial Management: Cora initiated a new collection period of 90 days same as
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