Question
ABC Co. will run out of cash within a couple of months unless the new CEO can reduce costs and restructure the company's debt. ABC
ABC Co. will run out of cash within a couple of months unless the new CEO can reduce costs and restructure the company's debt. ABC was the dominant market leader in the industry consisted of firms which manufacture womens fashion. ABC had historically been profitable, and clients were satisfied with their products. In recent years, however, the industry overall and ABC's sales, had been in decline. This left ABC with a cost base that was no longer sustainable. The CEO must decide where to cut costs. A bankruptcy reorganization is one option open to the company. As a CFO, describe the accounting ratios that you will need to improve in order to convince the creditors to give ABC the time it needs to turn around
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