Question
Is Digitronics experiencing seasonal or long-term sales growth (or both), and what is the appropriate way to finance its sales growth? Digitronics is experiencing only
Is Digitronics experiencing seasonal or long-term sales growth (or both), and what is the appropriate way to finance its sales growth?
Digitronics is experiencing only seasonal sales growth, which should be financed short-term. Digitronics is experiencing seasonal and long-term sales growth, both of which should be financed long-term. Digitronics is experiencing long-term sales growth, which should be financed long-term. Digitronics is experiencing seasonal and long-term sales growth. both of which should be financed short-term.
(Note: please provide me the answer with explanation.)
Digitronics, Inc. Income Statements (in $000s) Years Ended December 31: 2014 20Y3 20Y2 20Y1 $ $ $ $ Sales Cost of goods sold Depreciation expense Gross profit 15,500 10,959 1,255 3,286 12,200 8,893 1,477 1.830 8,288 6,212 915 9,750 7,505 1,030 1,215 1,161 575 Operating expenses General and administrative expense Selling expense Other expense Total operating expenses 850 344 514 28 886 280 421 19 250 436 20 706 49 1,474 720 Profit before taxes 1,812 944 441 509 Provision for income taxes 706 396 167 178 Net income $ 1,106 $ 548 $ 274 $ 331 Digitronics, Inc. Monthly Sales (in $000s) $ January February March April May June July August September October November December 2014 1,280 1,210 1,335 1,290 1,280 1,345 1,340 1,285 1,315 1,260 1,250 1,310 20Y3 900 990 1,020 1,110 1,000 1,020 955 1,035 1,000 1,085 1,025 1,060Step by Step Solution
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