Review this chapter’s opening feature involving Andy Wolf and his startup company, Premier Snowskates.

Required 1. What is a conservative estimate for the units of snowskates that will be sold if annual sales are $3 million and Andy Wolf meets his targeted retail price?

2. What ratios studied in Chapters 1 through 4 do you recommend that Andy use to monitor the fi¬ nancial performance of his company?

3. What portions of the classified balance sheet do you believe are most relevant in assisting Andy in discovering what obligations are due and when?

4. What objectives are met when Andy applies closing procedures each fiscal year?