Suppose you manage WinterWorld Inc., a ski and snowboard store, which lost money during the past year. Before you can set the business on a successful course, you must first analyze the company and industry data for the current year in an effort to learn what is wrong. The data appear below.
Required
On the basis of your analysis of these figures, suggest three courses of action WinterWorld Inc. should take to reduce its losses and establish profitable operations. Give your reasons for each suggestion.

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WinterWorld Inc. Income Statement Data WinterWorld Inc. 1000% Industry Average 100-090 Net sales Cost of sales Gross margin Operating expense Operating income (loss) Interest expense 388 44.6 (38.6) 6.0 (AMU) Income (loss) before income tax Inco 0.8 (3.7) 1.3 0.4 5.2 me tax (expense) saving Net income (loss) 3.4% WinterWorld Inc. Balance Sheet Data nc.Industry Average Cash and short-term investments Accounts recelvable Inventory Prepaid expenses 0.2% 8.0% 15.5 57.5 67.1 0.5 87.8 10.2 20 100.0% 18.0% 6.0 182 6.9 49.1 16.0 65.1 34.9 100.0%, Total current assets 81.6 14.4 4.0 100.0% 14.0% Property, plant, and equipment,net Total assets Bank loan, 696 Notes payable, short-term, 8% Accounts payable Accrued liabilities 8.4 44.7 14.0 Total current liabilities Long-term debt, 8% Total liabilities Common shareholders equity Total liabilities and shareholders' equity 41.3 100.0%