This preview shows page 1. Sign up to view the full content.
Unformatted text preview: the cost of goods sold for the years 2003-2005, but by a shrinking amount each year. The company’s gross and net margins are both shrinking over this time period. The operating expenses are increasing over the period. The percentage of total assets to total liabilities lies within a 2 percent range for the period, from 54.53% - 56.16%, and the ratio of long term debt to total assets is fairly steady in the range of 6.66 – 6.70, so the company couldn’t be said to be heavily in debt. The amount of total assets would make it appear that the company can pay expenses and finance development of new products and information systems, but if you consider these activities as needing cash, the picture might not be as good. For 2005 total current assets minus inventory equals $20.07 million and total current liabilities for that year are $19.8 million, which is a pretty tight margin when it comes to developing new products and paying for information systems....
View Full Document
This note was uploaded on 08/02/2011 for the course MIS 615 taught by Professor D.babbs during the Spring '11 term at Andrew Jackson.
- Spring '11