Last year was the worst for the High Street in more than 25 years as the coronavirus
Question:
“Last year was the worst for the High Street in more than 25 years as the coronavirus accelerated the move towards online shopping, analysts say. Nearly 180,000 retail jobs were lost in the UK in 2020, up by almost a quarter on the previous year, according to the Centre for Retail Research (CRR). It warned there will be more pain for the sector in 2021 as retailers face a cash flow crisis and rent payments.”
'Worst year for High Street job losses in 25 years' Joshua Haigh, (BBC Business News 2021) Required:
a. With reference to specific accounting conventions, explain why and how accounting profit differs from cash and why this distinction is important for assessing the viability of a business.
b. Drawing on your understanding of ratio analysis, explain how you would evaluate the working capital of a high street retailer.
Expert Answer:
a With reference to specific accounting conventions explain why and how accounting profit differs from cash and why this distinction is important for ... View the full answer
