Suppose you manage The Runner's Store Inc., a 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 and industry average data follow:

Requirement
On the basis of your analysis of these figures, suggest four courses of action The Runner's Store might take to reduce its losses and establish profitable operations. Give your reason for each suggestion.

The Runner's Store Inc. Common-Size Balance Sheet Data Runner's Store Industry Average Cash and short-term in Trade receivables, net Inventory Prepaid expenses Total current assets vestments 3.0% 6.8% 15.2 64.2 1.0 83.4 12.6 4.0 100.0% 60.5 0.0 78.3 15.2 6.5 100.0% assets, net Other assets Total assets Notes payable, short-term 12% Accounts payable Accrued liabilities Total current liabilities Long-term debt, 11% Total liabilities Common shareholders' equity Total liabilities and shareholders' equity 14.0% 21.1 46.0 19.7 65.7 34.3 100.0% 25.1 7.9 47.0 16.4 63.4 36.6 100.0% The Runner's Store Inc. Common-Size Income Statement Data Runner's Store 100.0% (68.2) 3 1.8 Industry Average Net sales Cost of sales Gross profit Operating expense Operating income (loss) Interest e Other revenue Income (loss) before income tax Income tax (expense) saving. Net income (loss) 100.0% (64.8) 35.2 (32.3) 2.9 (5.3) (5.8) 0.3 1.9 (0.8) (10.0) (5.6)%