solving Problems A retailer's current assets are $7.4 milli The retailer wants to be rells him that, to borrow m ets are $7.4 million. Presently, his current ratio is 1.5. ants to borrow money to fund an expansion: however, a lender horrow money, the retailer must bring his current ratio up t's current liabilities? By how much must he reduce ilities to obtain a loan, assuming that current assets remain What are the retailer's current liabilities? By h to 2.0. What a his current liabilities constant? 2. Complete the following grid: Net Sales Cast of goods sold Gross margin-dollars Gross margin-percent Expenses-dollars Expenses-percent Net income-dollars Net income-percent Dollars expressed in millions Store 1 Store 2 Store 3 Store 4 Store 5 Store 6 $12. 0 80.7 $155.0 1,438.8.131.6 $4,056.7 6.1 $42.6 59.2 $951.2 $90.0 1,619.5 $5.9 $38.1 95.8 $487.6 41.6 $2,387.2 149.2% 47.2% 61.8% 33.97|31.6% 58.8% $4.2 31-9 $88.2 464.9 $41.1 2,259.7 35.0% 39.56 56.9% 32.3% 31.2% 55.71 1.7 $6.2 97.6 $22.7 $0.5 $128.5 14.2% 7,7% 4,9% 1.6% 0.4% 3.2% 3. Review the component percentages for each store in problem 2 above. Which store is the best performer? The poorest performer? What advice would you give to the poorest performer relative to improving performance? Suggest how to increase net income by increasing gross margin and/or decreasing expenses by specific dollar amounts. Problem #3