This case represents an actual retail company. The dates and format have been changed. Required a. Compute

Question:

This case represents an actual retail company. The dates and format have been changed.
Required
a. Compute and comment on the following for 2005, 2006, and 2009:
1. Working capital
2. Current ratio
b. Comment on the difference between net income and net cash outflow from operating activities for the year ended December 31, 2006, and December 31, 2009.
c. This company reported a loss of $177,340,000 for 2010. Reviewing the data, speculate on major reasons for this loss.
d. Considering (a), (b), and (c), comment on the wisdom of the short-term bank loan in 2010. (Consider the company’s perspective and the bank’s perspective.)

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...