Question

Cary Corporation’s forecasted 2016 financial statements follow, along with industry average ratios.
a. Calculate Cary’s 2016 forecasted ratios, compare them with the industry average data, and comment briefly on Cary’s projected strengths and weaknesses.


b. What do you think would happen to Cary’s ratios if the company initiated cost-cutting measures that allowed it to hold lower levels of inventory and substantially decrease the cost of goods sold? No calculations are necessary. Think about which ratios would be affected by changes in these twoaccounts.


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  • CreatedNovember 24, 2014
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