Case 1

Harrod's Sporting Goods

6. Hanod's has superior sales to total assets ratio compared to the industry. For 2015, compute ratios 4, 6, and 7 as described in the text and compare them to industry data to see why this is so. Write a brief one-paragraph description of the results. Note: for ratio 4, only half the sales are on credit terms.

7. Conclusion: Based on your analysis in answering Questions 4 and 5, do you think that Becky Harrod has a legitimate conplant about being charged 2k percent over prime instead of one percent over prime? There is no absolute right answer to this questio. but use yor best judgment.