1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
Identify whether each of the following examples belongs in M1 or M2. If an example belongs in both, be sure to check both boxes.
Mama L [17]

Answer and Explanation:

The identification is as follows:

As we know that

M! money supply involved all the currecies that have physical existance i.e. notes, coins, demand deposits etc

While on the other hand, M2 involves M1 + near money i.e. mutual funds, checking deposits, money market etc  

Since Susan has 2 year CD so it would be classified as a M2 money supply

Since larry withdraw from the bank so it would be included in M1 and M2

And, since raphael has $25,000 in money market  so  would be classified as a M2 money supply

7 0
2 years ago
Revenue is recorded when services have been performed or products have been delivered to customers. The accounting principle sup
VladimirAG [237]

Answer:

The revenue recognition principle

Explanation:

The revenue recognition principle states that revenue should be recorded when services have been performed or products have been delivered to customers and  not when cash is received for the service rendered

For example, if a supplier delivers 10,000 worth of goods to consumers in November and is paid for the goods in December. Revenue should be recognised in November and not December.

3 0
2 years ago
GRZ Inc. purchased a customized delivery truck in January 2018 for $70,000. They plan to use this truck for 7 years, and the com
asambeis [7]

Answer:

The correct answer is A) $2.800

Explanation:

Using the straight-line method to depreciate, the calculation to find the depreciation tax shield is the following:

  1. Finding the depreciable cost: Depreciable cost = purchase price ($70,000) - salvage value ($14,000) = $56,000
  2. Finding the depreciation per year: Depreciation/year = \frac{Depreciable cost (56,000)}{Asset useful life (7 years)} = $8000
  3. Finally, the depreciation tax shield for 2018: Depreciation tax shield = Dep/year ($8,000) * tax rate (0,35) = $2,800
7 0
3 years ago
Mr. And mrs. Atoll are planning a party for 10 people and want to make sure they have enough soda for everyone to have two bottl
melomori [17]

The option that makes the most sense for the party by Mr and Mrs Atoll is one case of 24 sodas at $18.50.

<h3>Why this option is the cheapest</h3>

The reason for this is that given the guests they are entertaining, this option is the most cheapest and effective.

How to calculate for the way that the drink would go round

a. Each bottle is $1.5. Two bottles for 1 = 1.5x2 = 3 dollars

b. six packs at 5$. One= $0.88

c. A case of 24 sodas at $18.5. one soda is going to be  18.5/24 = $0.77

d. Two cases of 24 soda at 18.5 = $1.54

Given the calculations that have been done above, option c at $0.77 is the cheapest. It would require them to send the less money in getting sodas that would go round twice for 10 people.

Read more on the economy here: brainly.com/question/1106682

5 0
2 years ago
Why is there no competition in a monopoly?
barxatty [35]
A) there are no close substitutes

Explanation:

A monopoly results when there is a single provider of a particular good or service. Since they’re the only company providing that good or service, the consumer must conduct their business with that specific provider. For example, imagine that Walmart is the only store you can buy food from. Walmart would dominate the entire supply market as it would be the only store from which you can buy your food.
7 0
3 years ago
Read 2 more answers
Other questions:
  • HELP!
    7·2 answers
  • Adams Moving and Storage, a family-owned corporation, declared a property dividend of 1,200 shares of GE common stock that Adams
    11·1 answer
  • Transaction processing systems are most commonly encountered at the senior management level of an organization.
    8·1 answer
  • Suppose your firm has a marginal revenue given by the equation MR = 10 - Q where Q is the quantity produced and sold. This means
    6·1 answer
  • Culture is all of the following, Except
    6·1 answer
  • The following transactions occurred during March 2018 for the Wainwright Corporation.
    13·1 answer
  • In an​ economy, the​ working-age population is 100 million. Of this​ total, 80.0 million workers are employed. 3.0 million worke
    8·1 answer
  • Demand-pull inflation occurs when
    5·2 answers
  • To make effective decisions in​ today's fast-moving​ world, managers need to​ ________.
    13·1 answer
  • Reason for a bimodel distribution
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!