Michelle Le Professor Hitchman & Dr. Norwood HDCS 3369 Entrepreneurship Case Study/Problem 4 1. Evaluate the overall performance and financial structure of Pearson Air Conditioning & Service. Pearson Air Conditioning & Service has managed to increase net profits over the years with 2011 being the highest on record. It is troubling that their debt outweighs their equity in the business however. Their working capital does produce a positive number showing that their current assets are able to meet the needs of their current liabilities, however their days to convert working capital into sales seems to be high. Their inventory seems to be quite high with the company holding the inventory 70 days before selling it. Since most of the payables are due in 30-60 days the inventory has not even been sold before payment is due, which is not ideal. 2.What are the firm’s strengths and weaknesses in this firm’s management of accounts receivable and inventory?
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- Fall '13
- Pearson Air Conditioning & Service