The following are the financial highlights for Loby HobyInc (LLI

Its 2014 income statement is the following:

Revenue???????????????.3350

Selling, General and Administrative????.1898

Depreciation?????????????..1460

EBIT?????????????????..-8

Interest Expenses????????????..36

Taxable Income?????????????-44

Income taxes?????????????.-17.6

Net Income?????????????...-26.4

Dividend????????????????.0

a) What appear to be the problems of this company? Please use financial ratio analysis to justify your answers.

b) What would you suggest to fix the problems?

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Revenue EBIT Interest Taxes Net Profit Current Assets Net Fixed Assets Current Liabilities Long-term Debt 2014 3350 -8 36 -17.6 -26.4 668 922 679 235 Shareholders' 697.6 Equity Number of Stores Employees 13,089 239 2013 3313 311 62 59 188 468 779 364 158 724 220 2012 2844 255 64 45 144 490 752 347 296 598 211 2011 2795 242 57 42 141 434 679 301 310 501 184 11,535 9,834 9730 2010 2492 211 47 39 124 391 609 275 318 406 170 9034 2009 2159 155 45 34 75 422 535 319 314 323 156 7345 Revenue EBIT Interest Taxes Net Profit Current Assets Net Fixed Assets Current Liabilities Long-term Debt 2014 3350 -8 36 -17.6 -26.4 668 922 679 235 Shareholders' 697.6 Equity Number of Stores Employees 13,089 239 2013 3313 311 62 59 188 468 779 364 158 724 220 2012 2844 255 64 45 144 490 752 347 296 598 211 2011 2795 242 57 42 141 434 679 301 310 501 184 11,535 9,834 9730 2010 2492 211 47 39 124 391 609 275 318 406 170 9034 2009 2159 155 45 34 75 422 535 319 314 323 156 7345

Answer rating: 100% (QA)

2014 2013 2012 2011 2010 2009 Revenue 3350 3313 2844 2795 2492 2159 EBIT 8 311 255 242 211 155 Inter... View the full answer