O 3,4 C12-75. (Learning Objectives 3, 4: Identify action to cut losses and establish profitability) Suppose you manage High Peaks Performance, Inc., a Vermont sporting goods store that lost money during the past year. To turn the business around, you must analyze the company and industry data for the current year to learn what is wrong. The company's data follow: A1 High Peaks Performance, Inc. Common-Size Balance Sheet Data 2 High Peaks Industry Average 3 Cash and short-term investments 3.0% 6.8% 5 Inventory 4 Trade receivables, net 6 Prepaid expenses 7 Total current assets 15.2 11.0 64.2 60.5 1.0 0.0 83.4% 78.3% 8 Fixed assets, net 12.6 15.2 9 Other assets 4.0 6.5 10 Total assets 100.0% 100.0% 11 12 Notes payable, short-term, 12% 17.1% 14.0% 13 Accounts payable 21.1 25.1 14 Accrued liabilities 7.8 7.9 15 Total current liabilities 46.0 47.0 16 Long-term debt, 11% 19.7 16.4 17 Total liabilities 65.7 63.4 18 Common stockholders' equity 34.3 36.6 19 Total liabilities and stockholders' equity 100.0% 100.0% 20