A company's quarterly income statements show that in the last three quarters both Sales Revenue and net income have been falling.Given this information,which of the following conclusions drawn by users are valid?

Question

Quizplus · Accepted Answer

Given the downward trend in sales and net income,owners may conclude that the company will be less likely to distribute dividends.Creditors are likely to conclude that the risk of lending to the company is increasing (rather than declining)and might demand a higher (rather than be willing to accept a lower)interest rate on loans.Investors are likely to conclude that the stock price is likely to decline (rather than rise),making the company less (rather than more)attractive as a potential investment.Customers are legally required to pay amounts they owe to the company when they are due;customers do not have the options of changing those terms.

A Company's Quarterly Income Statements Show That in the Last