Question
Part 1 (50%) Earth's General Store (EGS) is at a crossroad and must make a decision that will determine the future direction of the company.
Part 1 (50%) Earth's General Store (EGS) is at a crossroad and must make a decision that will determine the future direction of the company. There are multiple options. The case provides two years of Income Statements. You are to advise the company which direction you feel it should pursue. Perform a financial analysis with the limited financial information that you have available. Use the analytical tools that you feel are most relevant. Identify the events or reasons that you feel led to the changes from the 2014 to the 2015 Income Statements. (30%) Identify what you feel are the different options that are available. Be specific! Identify the pros and cons of each option. Your analysis should include both quantitative and qualitative factors for each option. (10%) Based on your analysis, select what you feel is the best option to recommend to EGS. List the reasons supporting your recommendation. Use point form (bullet points) throughout your analysis. (10%)
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