Question: This case represents an actual retail company. The dates and format have been changed. Required a. Compute and comment on the following for 2005, 2006,

This case represents an actual retail company. The dates and format have been changed.
Required
a. Compute and comment on the following for 2005, 2006, and 2009:
1. Working capital
2. Current ratio
b. Comment on the difference between net income and net cash outflow from operating activities for the year ended December 31, 2006, and December 31, 2009.
c. This company reported a loss of $177,340,000 for 2010. Reviewing the balance sheet data, speculate on major reasons for this loss.
d. Considering (a), (b), and (c), comment on the wisdom of the short-term bank loan in 2010. (Consider the company’s perspective and the bank’s perspective.)

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a 1 2005 2006 2009 Total current assets 628408895 719478441 1044689000 Total current liabilities 366... View full answer

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