Suppose you manage Outward Bound, 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:

Requirement
1. On the basis of your analysis of these figures, suggest four courses of action Outward Bound might take to reduce its losses and establish profitable operations. Give your reason for each suggestion.(Challenge)

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Outward Bound, Inc. Common-Size Balance Sheet Data Outward Bound Industry Avera Cash and short-term investments Trade receivables, net Invento Prepaid expenses Total current assets Fixed assets, net Other a Total a 3.0% 6.8% 15.2 64.2 1.0 83.4% 12.6 4.0 100.0% 11.0 60.5 0.0 78.3% 15.2 6.5 100.0% 14.0% 25.1 7.9 47.0 16.4 63.4 36.6 100.0% Notes payable, short-term, 12% 21.1 7.8 46.0 19.7 65.7 Common stockholders' equity..34.3 nts payable Accrued liabilities Total current liabilities Long-term debt, l 1% Total liabilities Total liabilities and stockholders' equity 100.0% Outward Bound, Inc. Common-Size Income Statement Data Outward Bound 100.0% (68.2) 31.8 Industry Avera Net sa Cost of sale Gross profit Operating expense Operating income (loss)... Interest expense Other revenue Income (loss) before income tax. Income tax (expense) saving4.4 Net income (loss) 100.0% (64.8) 35.2 (32.3) 2.9 (5.3) (5.8) 0.3 1.9 (0.8) (5.6)% 1.1%