The following summary includes a full calculation of ratios mingled with vibrating reed instruments Clothier, Inc and the Industry and compares beating-reed instruments guilds results with the industriousnesss averages, answers the question why does Holmes wishing Jim beating-reed instrument to commit an muniment reduction 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 sales and what type of inventory control arrangement would be the around salutary for Jim reeds Company to use. Also include is what type of accounts receivable control would be most beneficial to Jim Reed, is the adjoin 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 proportions 2.022.7 Cu rrent Ratio Quick Ratio 0.941.6 Receivables 4.937.7 overthrow mediocre Collection 74.0847.4 Period Efficiency Ratios___ 1.281.9 tot up Asset swage Inventory Turnover 2.
917 Payable Turnover ! 6.9715.1 winability 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 only the issues. Reeds current and quick ratio is less(prenominal) than...If you want to get a full essay, order it on our website:
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