2. Building Team Skills This has been a bad year for Park Avenue Furniture. The firm increased sales $1,400,000, but total expenses ballooned to $1,750,000. Although management realized that some of the firm's expenses were out of control, including cost of goods sold ($700,000), salaries ($450,000), and ($140,000), it could not contain expenses. As a result, the furniture retailer lost $350,000. To make matters worse, the retailer applied for a $350,000 loan at Fidelity National Bank and was turned down. The bank officer, Mike Nettles, said that the firm already had too much debt. At that time, liabilities totaled $420,000; owners' equity was $600,000. revenues to advertising costs Assignment 1. In groups of three or four, analyze the financial condition of Park Avenue Furniture 2. Discuss why you think the bank officer turned down Park Avenue's loan request. 3. Prepare a detailed plan of action to improve the financial health of Park Avenue Furniture over the next 12 months