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Jet2 Task 5

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Custom Snowboards CFO Report Custom Snowboards, Inc. (CS) is a world-renowned company that has continued to grow over the last four years since being traded publically. With a center for operations in Minneapolis, and small warehouses and administrative offices in the Canadian and European markets, the potential for growth is evident in the company’s profitability, liquidity and solvency. There are risks associated with the company expansion, but those can be mitigated. With strong ratio analysis, the company is ready to receive and put to use the loan from the bank for $1,000,000.
A1: Key Points The key points in the income statements include increasing gross profits, decreasing net earnings, increasing total operating expenses, and decreasing operating income. The key points in the balance sheets are changes to cash and cash equivalents, short-term investments, increasing accounts and accounts payable, decreasing total long-term liabilities, and increasing total liabilities and equity. All of these are important because they show the company’s profitability, liquidity, and solvency. Gross profits were $1,984,500 in year 12, $2,048,200 in year 13, and continued to increase to $2,087,400 by year 14. This increase in gross profits is due to the increased net sales over the three years by an additional $338,100 from year 12 to 14. The company saw a 3.21% increase in sales from year 12 to 13, and another 1.91% increase from year 13 to 14. Costs of goods sold, has remained at a 69.6% of net sales, with gross profits maintaining a 30.4% of net sales for each year of the three years. Since the company is increasing gross profit, this demonstrates a strong product future and growth for the company. Net earnings in year 12 were $129,000 but again dropped in year 13 to $110,400 and in year 14 to $79,725. This is -14.42% or $18,600 for year 12 compared with year 13,

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