2.What are the strengths and weaknesses in this firm’s management of accounts receivable and inventory?I could not find any strengths in the firm’s management of accounts receivable and inventory. However, I did find a few weaknesses. The inventory was not managed well. They had “no way to calculate profits” (691). They need to have better standards when recording inventory. They need to place in a inventory system to track everything. Also, the accounts receivable did not know the number of overdue accounts. The number could be fine and then it could be twice the amount. This is a weakness because as a company they need to be aware of everything.
Stephanie HughesHDCS 3369Case Study 4Pearson Air Conditioning & Service3.Should the firm reduce or expand the amount of its bank borrowing? The firm should limit the amount of bank borrowing. And they should only consider doing it more if they are making a profit and can pay it back, also known as liquidity
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- Fall '13