RJET Task 1 Financial Analysis A. Summary A.1 Â adjudicate the communitys operational strengths and weaknesses: a. Horizontal Analysis Results The fit sheets show a growth in assets between stratum 6 and 7, with aggregate assets increasing by 2.9%. Liabilities for Competition Bikes, Inc. grew easy increasing by 1.2% which, although a small percentage, is still a sign of decreed growth. The balance sheet shows total assets fall by .1% whole when with liabilities also decreasing negatively by 1.9%, it offsets the impact of the assets decline. The lower in product cost and merchandising expense were non low enough to offset the decrease in gross revenue resulting in a decrease in net income by 82%.The income statement from year 6 to year 7 shows the product costs profitd by 31% as well as gross sales increasing by 33%. When reviewing the income statement from year 7 to year 8, sales lessen by 15%, product costs decreased by 14 % and the selling expense decr eased by 15%, however command direct expense change magnitude by 1%. The selling expense of 33% and general in operation(p)(a) expense of 20% both gaind from year 6 to year 7. These increases did not offset the increase in sales, only if helped contribute to having greater profits in year 7 than the prior year, while net income grew by 313%.
* Strengths: Sales increase between year 6 and year 7 which shows they sustain the ability to have positive sales percentages. The net income having a growth of 313% shows the potential that this bon ton has for future stability and company worth. Also, the selling expense i ncreased along with the general operating ex! pense also increasing from year 6 to year 7 helping to increase the companys profits for year 7. otherwise strength with this company is in where their percentages seem to offset decreases creating a balance in most cases. * Weaknesses: There was a critical decrease of 15% in sales from year 7 to year 8. This percentage needs to remain positive over the next few years...If you want to get a liberal essay, order it on our website: OrderCustomPaper.com
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