This is a multipart problem. Students must complete each part to receive full credit. Also, students must detail all steps and calculations. Zero credit will be awarded if you do not detail all of your steps and calculations.

In $2022,$ your small start$-$up company had sales of $$60,000,$ expenses of $$50,000,$ net income of $$10,000,$ assets of $$300,000$ and liabilities of $$200,000.$ In $2023,$ your company grew significantly and had sales of $$900,000,$ expenses of $$550,000,$ net income of $$350,000,$ assets of $$4\mathrm{.}9$ million and liabilities of $$3\mathrm{.}8$ million.

For comparison sake, you have observed the financial characteristics of your direct competitor over the same period of time. In $2022,$ your competitor had sales of $$2$ million, expenses of $$800,000,$ net income of $$1\mathrm{.}2$ million, assets of $$8$ million and liabilities of $$4$ million. In $2023,$ your competitor had sales of $$1\mathrm{.}8$ million, expenses of $$700,000$ net income of $$1\mathrm{.}1$ million, assets of $$7\mathrm{.}8$ million, and liabilities of $$3\mathrm{.}8$ million.

 

a$)$ How has your company changed from $2022$ to $2023?$

b$)$ How has your competitor changed from $2022$ to $2023?$

c$)$ How does your company compare to your competitor?

d$)$ What should you be concerned about at your company? What changes should you consider?

Answer rating: 100% (QA)

a Changes in Your Company from 2022 to 2023 Sales Increased ... View the full answer