Case 1. Suppose you manage Lancer.com, an e-commerce startup that lost money during the past year. Before you can set the business on a successful course, you must analyze the company and industry data for the current year to learn what is wrong. The company's data follow at the top of the next page. Required On the basis of your analysis of these figures, suggest three courses of action Lancer.com might take to reduce its losses and establish profitable operations. Give your reasons for each suggestion. Lancer.com Balance Sheet Data Lancer.com Industry Average Cash and short-term investments Inventory 3.0% 6.8% 79.4 71.5 Prepaid expenses 1.0 0.0 Total current assets. 83.4 78.3 Plant assets, net 12.6 15.2 Other assets 4.0 6.5 Total assets.. 100.0% 100.0% Notes payable, short-term, 12% 26.2% 14.0% Accounts payable 12.0 25.1 Accrued liabilities. 7.8 7.9 Total current liabilities. 46.0 47.0 Long-term debt. 11%. 24.8 16.4 Total liabilities 70.8 63.4 Common stockholders' equity 29.2 36.6 Total liabilities and stockholders' equity. 100.0% 100.0% Lancer.com Income Statement Data Lancer.com Industry Average Net sales. 100.0% Cost of sales. (74.2) 100.0% (64.8) Gross profit. 25.8 35.2 Operating expense.. (35.1) (32.3) Operating income (loss) (9.3) 2.9 Interest expense...... (8.5) (1.3) Other revenue 1.1 0.3 Income (loss) before income tax (16.7) 1.9 Income tax (expense) saving. 4.4 (0.8) Net income (loss)...... (12.3)% 1.1%