a) Briefly discuss what these financial ratios indicate about how UCW Furniture Inc was affected by its decision to change its strategy in 2022.
a) Briefly discuss what these financial ratios indicate about how UCW Furniture Inc was affected by its decision to change its strategy in 2022.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please help me with these questions in detail
Transcribed Image Text:File
Paste
C26
4
5
6
7
8
9
10
11
12
13
Clipboard
Home Insert Page Layout
23
24
Cut
Copy
Format Painter
25
26
27
28
Readly
H
A
Q
19
Z
1 X ✓ fix
Current ratio
Quick ratio
Calibri
BIU-
Receivables turnover
Inventory turnover
Debt to equity ratio
Return on assets
Gross margin
Profit margin
Return on equity
2
AP12 10 AP12-14B
Accessibility: Good to go.
Type here to search
A
B
C
1 AP12-14B (Analysis using selected ratios)
2
3 The UCW Furniture Inc. operates several stores selling pine furniture. Selected financial ratios are as follows:
W
S
Formulas Data
X
3
-11
☆
168-
Fort
E
D
+
- A A
A
2024
2.35
0.96
10.43
5.61
0.88
5.5%
8.7%
3.8%
14.2%
C
с
$
4410
4
Review View
JL
23
R
19
F
=
===
14
15
16 In 2022, UCW Furniture Inc decided to change its strategy from selling high-end furniture to selling lower-cost items in order to be more competitive
17 and began importing low-cost furniture. In order to do this the company invested in new warehouse facilities and its total assets grew from
18 $2.5 million in 2022 to $4.5 million in 2023 and finally to $5 million in 2024.
19
20 Required
21
a) Briefly discuss what these financial ratios indicate about how UCW Furniture Inc was affected by its decision to change its strategy in 2022.
22
%
=
D
2023
2.30
0.91
V
5
9.61
5.37
0.77
6.0%
12.6%
4.2 %
13.0%
Help
T
2
G
Alignment
40
ab Wrap Text
6
B
Tell me what you want to do
Merge & Center
F
2022
2.25
0.88
8.69
5.07
0.58
9.8%
18.7%
6.9%
12.0%
Y
4
&
H
TM
F
7
F
N
Individual Assignment (1) - Excel
U
General
2
8
%;
J
Number
Nov 144
1
M
00
G
(
9
G
K
13
I
S
Conditional Format as Cell
Formatting Table Styles
Styles
>
O
H
O
L
P
1
(?)
:
{
TE EX
H
E
Insert Delete Format
J
Cells
1
K
A aayushisingh54890
.
3°C Cloudy
1
Σ AutoSum -
Fill
✓Clear
L
Edit
M
Activate
3
20
Transcribed Image Text:→
File
Paste
C26
4A
37
38
39
40
41
42
43
44
45
46
47
48
52
53
54
H
Cipboard
55
56
Home Insert Page Layout
Cut
Copy-
Format Painter
57
58
59
60
61
62
63
64
Ready
#
A
Q
▾
N
G
1 X ✓ fx
B
Calibri
2
BIU.
AP12-1B AP12-14B
Accessibility: Good to go
Type here to search
alt
W
S
b) Which measures have deteriorated during the subsequent periods?
49
50
51
c) Which ratios indicate positive action taken by UCW Furniture Inc during the subsequent periods?
X
Formulas Data Review View Help
#
3
-11
84 -
Font
E
D
C
- A A
А.
&
C
$
"10
4
G
R
F
=
%
SE
H
D
5
O E
V
T
← →
G
Alignment
40
6
E
B
Tell me what you want to do
Wrap Text
Merge & Center -
&
H
7
U
N
Individual Assignment (1) - Excel
6
General
2. % '
8
J
Number
to 144
1
M
+0
.00 +4
G
9
D
Conditional Format as
.co
Cell
Formatting Table Styles
Styles
K
F
11
O
H
O
L
P
I
?
FE
EB
Insert Delete Format
J
?
=
EX
Cells
A aayushis
K
1
3°C Cloudy
WE
L
Σ
F
C
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education