Use the Entertainment Centre Ltd. data in exercise 3-12 to answer the following questions.

1. Was the net revenue high enough to cover all of ECL's costs?

2. What could you do to improve this situation?

Exercise 3-12

Entertainment Centre Ltd. reported the following data at March 31, 2020, with amounts adapted and in thousands:

Transcribed Image Text:

Retained earnings, March 31, 2019. $ 1,300 Cost of goods sold... $126,000 Accounts receivable...... Net revenues Total current liabilities. All other expenses. Other current assets Other assets. 27,700 Cash......... 900 174,500 Property and equipment, net.. 7,200 53,600 Share capital.. 26.000 45,000 Inventories 33.000 4,800 Long-term liabilities 13,500 24,300 Dividends... 0