For Wak_solutions only

Respond to one of the following Discussion topics for your initial response by Saturday, and then respond to two or more fellow classmates’ responses (two posts) by Tuesday. It is strongly recommended your responses be completed on three or more separate days to promote the conversation.

Discussion Topics:

1. Revenues increased by 30 percent in your firm during the past year while total assets increased only 5 percent and Equity Financing Ratios remained constant at 50.0 percent. Return on Equity remained constant at 12.0 percent. Why didn’t Return on Equity increase?
2. One useful way to review the validity of a financial plan is to compare the projected financial ratios with historical values. Why?
3. What is one of the four critical questions that must be answered for dashboard reporting? Why is it important to ask?