Suppose you manage Campbell Appliance. The store's summarized financial statements for 2017, the most recent year, follow:
Campbell Appliance
Income Statement
Year Ended December 31, 2017
Sale .....................................$800000
Cost of Goods Sold ...................660000
Gross Profit .............................140000
Operating Expenses ...................100000
Net Income .............................$40000

Assume that you need to double net income. To accomplish your goal, it will be very difficult to raise the prices you charge because there is a discount appliance store nearby. Also, you have little control over your cost of goods sold because the appliance manufacturers set the amount you must pay.
Identify several strategies for doubling net income.

Transcribed Image Text:

CAMPBELL APPLIANCE Balance Sheet December 31, 2017 Assets Liabilities and Stockholders' Equity Cash Inventories Land and Buildings, Net $ 30,000Accounts Payable 75,000 Note Payable 360,000 Total Liabilities s 35,000 280,000 15,000 50,000 465,000 Total Liabilities and Stockholders' Equity $ 465,000 Stockholders' Equity Total Assets