The following summary includes a full calculation of ratios mingled with vibrating reeds Clothier, Inc and the Industry and compares beating-reed instruments guilds results with the industriousnesss averages, answers the question why does Holmes wishing Jim reed to commit an muniment simplification sale, and what does he think will be accomplished by it, if he strengthens his working capital policy to the averages, would this affect his gross revenue and what type of inventory control arrangement would be the virtu each(prenominal)y skilful for Jim beating-reed instruments Company to use. Also include is what type of accounts receivable control would be most beneficial to Jim Reed, is the gain in sales link up to the increase in inventory, and what is Jim Reeds cost of not taking the supplier discounts. Reed Industry 1. Liquidity ratios 2.022.7 Current Ratio Quick Ratio 0.941.6 Receivables 4.937.7 overthrow mediocre Collection 74.0847.4 Period Efficiency Ratios___ 1.281.9 full(a) Asset overthrow Inventory Turnover 2.
917 Payable Turnover ! 6.9715.1 wampumability Ratios .30 Or 30%33 unadulterated Profit Margin Net Profit Margin .0427.8 Return on Common 0.16 Or 16%25.9 Equity The ratios reveal Reeds Clothier Company invested too heavily in inventory and is not making enough profit. Looking at the ratios, Reeds Company is inadequate on all the issues. Reeds current and quick ratio is slight than...If you want to get a full essay, order it on our website:
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