You have been asked to perform financial statement analysis on the Rush Company. The Rush Company is
Question:
You have been asked to perform financial statement analysis on the Rush Company. The Rush Company is a large chain of retail outlets that sells a wide range of household items. Last year the company introduced its own credit card and is pleased that profit from this financing activity now accounts for over 20% of the company's total profit. As part of your analysis you have chosen to compare the Rush Company to Johnson Stores, a much larger chain of stores. Johnson Stores sells household items and groceries, but it does not have its own credit card. Your analysis includes both trend analysis and vertical analysis. Identify some of the limitations from the description above.
Step by Step Answer:
Managerial Accounting For Undergraduates
ISBN: 9780357499948
2nd Edition
Authors: James Wallace, Scott Hobson, Theodore Christensen