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spin [16.1K]
3 years ago
14

You are the financial analyst at Sew Mart, an arts and crafts retail store. Your boss has asked you to review the company's fina

ncial results for the past three years and to provide an analysis of your findings: Sew Mart Ratios 20x9 20x8 20x7 Sales trend 162 22.1 25.1 Current ratio 0.78 1.90 2.20Acid-test ratio 0.40 1.32 1.90Accounts receivable turnover 41.29 33.20 10.60Inventory turnover 3.58 6.25 7.80Incorporate the following questions into your discussion of the company's financial performance. 1. Has your company performed worse, better, or about the same? 2. Should you be concerned about any ratio noted in your analysis? 3. What recommendations would you share with your boss on the financial health of the company?
Business
1 answer:
mario62 [17]3 years ago
8 0

Answer:

1. It has worsened

2. Yes (refer details below)

3. Refer details below

Explanation:

1. Performance

The performance of the company over the last three years has worsened as indicated by declining sales and decreasing current ratios impacting profitability and liquidity of the company.

2. Concerns

One of the most important concern for the company is its declining sales. It shows that the products are not competitive. Current ratios indicates liquidity crisis since they are decreasing.

3. Recommendations

The company's turnover ratio is high, which may indicates payments are being received timely, and hence the co. should take advantage of that

Low inventory turnover, on the other hand, indicates weaker sales and declining demand for a company’s products which is corroborated by the declining sales trend, the co. must increase its sales, launch new products, advertise aggressively.

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Ahmad bought a desktop computer and a laptop computer. Before finance charges, the laptop cost less than the desktop. He paid fo
deff fn [24]

Answer:

cost of laptop = $1,800

cost of desktop = $2,100

Explanation:

From the question above, we can see that the laptop costs $300 less than the desktop, therefore, we say:

let x represent the cost of the laptop ;

then x+300 will be the cost of the desktop .

We can also see that the total finance charge of $252 is equal to 7% of the cost of the laptop and 6% of the cost of the desktop, we solve as follows:

252 = 0.07(x) + 0.06(x + 300)

252 = 0.07x + 0.06x + 18

252 - 18 = 0.13x

234 = 0.13x

x = 234/0.13

x = 1,800

Recall that:

cost of desktop = x + 300

therefore:

1,800 + 300 = 2,100.

cost of laptop = $1,800

cost of desktop = $2,100

6 0
3 years ago
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Answer:

a. Define the basic business functions that you need the software to be able to perform.

Explanation:

The main function of a business needs to be determined so that business strategy can be formulated. The office manager has made an agreement to spend up to $1000 on the new software. It is now required to determine the basic functions which are needed in the new software for business functioning.

4 0
2 years ago
During January, Luxury Cruise Lines incurs employee salaries of $2.4 million. Withholdings in January are $183,600 for the emplo
garri49 [273]

Answer and Explanation:

The journal entry to record the  employee salary expense, withholdings, and salaries payable is shown below:

Salaries expense Dr $2,400,000

     To Income tax payable  ($360,000 + $150,000) $510,000

     To FICA tax payable $183,600

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(being employee salary expense, withholdings, and salaries payable is recorded)

Here the expenses are debited and payable are credited as it increased the expenses and liabilities

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Answer:

d. $10.

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Tax is a payment made to the government to assist it in financing its various programs. Taxes are the main source of government revenue.  Income tax is the tax levied on individuals and firms on their earnings.

Susan and Rebecca enter into a work agreement where Rebecca hires Susan to dog sit for her. Susan will be working and is expected to pay taxes on the income received. Rebeca will be attending a wedding, which is not an income-generating activity; hence she will not pay any taxes. It means only Susan will pay taxes as she is the only one who will be earning. If the tax imposed on dog sitting is $10, then the two ladies will be worse-off by $10.

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