At the end of a fiscal year 2020, a commercial construction company reported a total revenue of $4,000,000 and a gross profit of $647,000. Also, the net profits before and after Tax were reported as (-$25,000) and (-$64,000), respectively. The company’s general overhead ratio has been recorded around 16.8%. Comment on the financial health of this company and, if you see the area of improvements, provide your recommendation for the company to get more profitable.

At the end of a fiscal year 2020, a commercial construction company reported a total revenue of $4,000,000 and a gross profit of $647,000. Also, the net profits before and after Tax were reported as (-$25,000) and (-$64,000), respectively. The company’s general overhead ratio has been recorded around 16.8%. Comment on the financial health of this company and, if you see the area of improvements, provide your recommendation for the company to get more profitable.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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