Question
Accounting has put together the budgeted financial statements for 20X2 based on the status quo. Attached is an Excel file they put together so we
Accounting has put together the budgeted financial statements for 20X2 based on the status quo. Attached is an Excel file they put together so we can analyze different 'what-if' scenarios. I'd like you to run the numbers to see whether or not we should expand. If we should, how many new locations will be most beneficial? Once you've determined the optimal number of locations, I would like a memo with the critical financial information and your analysis of our financial situation. First, give me a quick summary of the following information: net income, cost of goods sold, total assets, cash balance, gross margin ratio, operating income ratio, debt-to-equity ratio, current ratio, inventory turnover, and net profit ratio. Second, analyze this information to help me understand the big picture. Why is this number of locations optimal? Basically, anything you think I should know to make good business decisions. Please present the information in an easily digestible format; data visualization will help me understand your analysis.