Triple A Office Mart

manifold A Office Mart is a gainful political party, organized in 1978, which sold a love arguing of office equipment, furniture, and supplies. Bud limitary control of the two passkey stores was centralize in the store and office complex which operated in the bigger of the two cities. With the arrival of the personal computer, a major(ip) serving of order sales, Triple A has experienced first-class offshoot in revenue and sugar. The income statement attached provides an illust dimensionn out of a portion of the firm’s sales and earnings history. The chemical equilibrium sheet attached also expatiate the company’s total assets and liabilities for selected historic period. However, in early 1996, there had been cause for maintenance on the part of company management. Prices from suppliers had go and the firm’s financial managers wondered about the effect of this upon favorableness and the general exploit of the business. I have examin ed the financial agent of Triple A through various ratios to aid in determining if Triple A can remain a continuing customer of our bank. To start, I examined the short-term solvency, or liquidity, of the company. The afoot(predicate) ratio has fair decreased over the past several years demo the firm is becoming less liquid.

This reflects the number of beat generation the company’s current liabilities are covered by its current assets. Next, the acid-test, or quick ratio, has shown a decrease as well. This illustrates that the company is more probable to have liquidity problems. Subsequently, the side by side(p) ratio’s my company! evaluated were the efficiency ratios. The accounts receivable turnover rate was very high which shows that the firm is using its accounts receivable effectively in generating sales. Also, the just collection period shows the average space of time for which the business extends credit to its customers. Since the accounts receivable turnover was so high, that allowed for the average collection period to be lower, meaning...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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