Answer all questions 1-2 in detail based on the given information below.

The Boutique: Annual Financials

Income Statement

Figures in $000's

	Year ending Feb 1, 2020	Year ending Feb 2, 2019	Year ending Feb 3, 2018
Net Sales	450.	470.	480.
Cost of Goods Sold	268.	267.	269.
Gross Profit	184.	193.	211.
S,G, & A	117.	121.	135.
Other Oper Expnses	48.	52.	17.
Net Profit	17.	30.	59.

Balance Sheet

Figures in $000's

		As of Feb 1, 2020	As of Feb 2, 2019
Assets	Cash	20.	30.
	Accounts Receivbl	10.	10.
	Inventories	60.	58.
	Other	10.	8.
	Total Current Assets:	100.	106.
	Equipmnt, Lease Rights, other	200.	192.
	Total Assets:	300.	298.
Liabilities	Accounts Payable	30.	25.
	Wages Payable	10.	10.
	Other	3.	9.
	Total Current Liabilities:	43.	44.
	Long-term debt	100.	97.
	Total Liabilities:	143.	141.
Stockholders' Equity	Total Stockholders' Equity:	145.	149.
Total Liabilities and Stockholders' Equity	Total Liabilities and Stockholders' Equity:	300.	290.

Sales by Location, in retail dollars

(Figures in $000's)

	Fiscal 2019	Fiscal 2018	Fiscal 2017	Fiscal 2016	Fiscal 2015
Peach Street	210.	205.	205.	200.	200.
Walnut Street	97.	98.	100.	95.	90.
Whitlock Ave	47.	70.	80.	95.	90.
Spruce Street	96.	97.	95.	85.	80.
Total	450.	470.	480.	475.	460.

Sales by Classification, in retail dollars

(Figures in $000's)

	Fiscal 2019	Fiscal 2018
Special Occasion	20.	40.
Dresses	80.	100.
Career	150.	130.
Casual	180.	150.
Furs	20.	50.
Total	450.	470.

Inventory by Classification, in retail dollars

(Figures in $000's)

	As of Feb 1, 2020	As of Feb 2, 2019
Special Occasion	8.	6.
Dresses	13.	14.
Career	13.	13.
Casual	14.	15.
Furs	12.	10.
Total	60.	58.

Nicole's Comparison Shopping Report

Retail Prices currently on the selling floors

	The Boutique	Ann Taylor	Macy's	Kohl's	Lilac & Rose	Target	Wal-Mart	Fur Vault
Special Occasion	$100-225	$70-90			$80-150
Dresses	$100-200	$40-60	$70-90	$20-50	$60-110	$15-30	$12-20
Career	$150-300	$70-110		$80-100	$100-130	$50-60	$30-50
Casual	$30-120	$10-40	$18-75	$8-30	$20-50	$9-25	$8-20
Furs	$300-500							$150-2500

Question 1:

Complete the corp analyzer based on the information above:

Financial Measure (see attachment)	Company's Performance; Period: 2019	Benchmark:Company's Past Performance; Period:2018	Benchmark: specialty store
Annual Sales Increase (Decr.)%			2.6%
Gross Margin %			34.5%
Operating Expense (S,G, & A) %			28.2%
Net Profit Margin %			5.4%
Inventory Turns			6.90
Current Ratio			1.20
Quick Ratio			.75
Total Debt to Equity Ratio			.78

Question 2:

From the Benchmarking the Financialschart you just filled out, which are the two highest priority and most immediate financial problems? Why is each one a high and immediate problem? Set a new, appropriate financial goal for each of these problems, substantiate each financial goal.