ACC445 P3T2 GP IP due 2-2-07 - ACC445-0701A-01 Cost...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
ACC445-0701A-01 Cost Accounting Cara Estes Phase 3, Task 2 – Group Project, Individual Portion Due: 2/2/07 What Management should review to improve performance in 2006 After carefully analyzing the budget for 2005, I have prepared a list of recommendations that management should review in order to improve performance in 2006: Performance Measures: Liquidity: The cash balance is $5k below budget that has resulted from an increase in inventory. Sales are $170k below budget, and that is a contributing factor in the inventory increase and corresponding cash decrease. The liquidity ratio represents the ability of SSOG to meet its current obligations. In this case, even though SSOG has not met its sales goals, they are in a strong position because cash is 68.7% of current liabilities. Solvency: The balance sheet reveals that SSOG is financially strong although sales were below budget. The debt-to-asset ratio is one ratio that is used to measure solvency. Profitability:
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/05/2011 for the course ACCOUNTING 101 taught by Professor Online during the Spring '11 term at Colorado Technical University.

Page1 / 2

ACC445 P3T2 GP IP due 2-2-07 - ACC445-0701A-01 Cost...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online