Read on P. 739 the problem C12-73. answer the questions required for the High Peaks Performance Company, a Vermont sporting goods company that lost money during the past year. When giving your four suggestions to improve their business and not suffer losses again, please make sure that the suggestions are not similar in nature. It needs to be four different courses of action that impacts four different areas of the operation and financial statement.

C12-73. (Learning Objectives 3, 4: Identify action to cut losses and establish profitability) Suppose you manage High Peaks Performance, Inc., a Vermont sporting goods store that lost money during the past year. To turn the business around, you must analyze the company and industry data for the current year to learn what is wrong. The company's data follow: LO 3,4 A1 High Peaks Performance, Inc. Common-Size Balance Sheet Data 1 High Peaks 3.0% 15.2 Industry Average 6.8% 11.0 60.5 2 3 Cash and short-term investments 4 Trade receivables, net 5 Inventory 6 Prepaid expenses 7 Total current assetsi 8 Fixed assets, net 9 Other assets 10 Total assets 64.2 1.0 83.4% 0.0 78.3% 15.2 6.5 100.0% 12.6 4.0 100.0% 11 12 Notes payable, short-term, 12% 13 Accounts payable 14 Accrued liabilities 15 Total current liabilities 16 Long-term debt, 11% 17 Total liabilities 18 Common stockholders' equity 19 Total liabilities and stockholders' equity 14.0% 25.1 17.1% 21.1 7.8 46.0 7.9 47.0 16.4 63.4 19.7 65.7 34.3 36,6 100.0% 100.0% 20 A1 High Peaks Performance, Inc. Common-Size Income Statement Data Industry Average 100.0% (64.8) 35.2 (32.3) High Peaks 100.0% Net sales Cost of sales 5 Gross profit 6 Operating expense 7 Operating income (loss) 8 Interest expense Other revenue 10 Income (loss) before income tax 11 Income tax (expense) benefit 12 Net income (loss) 68.2) 31.8 (37.1) (5.3) (5.8) 1.1 (10.0) 4.4 2.9 (1.3) 0.3 1.9 (0.8) 1.1% (5.6)% 13 Requirement 1. Based on your analysis of these figures, suggest four courses of action High Peaks might take to reduce its losses and establish profitable operations. Give your reason for each sug gestion. (Challenge