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Jft2 Task 5

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Task 5
JET2 Financial Analysis

CFO Report for Custom Snowboards Custom Snowboards is a worldwide company that is just starting to reach it more mature years as an organization. The company currently spans from Minneapolis to Canada as well as Europe. The company currently wishes to expand and it appears that they are financially ready to do so. Although there are risks as with any expansion but these should be resolved before any expansion takes place. The company is currently ready to get a loan from the bank for $1,000,000 in order to finance this expansion.
A1.
There are several different key points that will be addressed in this section; they include details on, decreasing operating income, increased profits, lowering net earnings, and increasing profits. The balance sheets will show the investments, accounts payable, the decreasing long term liabilities, as well as increasing total liability, and company equity. Each of these key points is important to a company so that they can show they are able to have liquid assets as well as be profitable in the future.
Starting with the company’s gross profits for tear 12 were $2,053,100, $1,920,800 in year 13 and $1,945,300 by year 14. As you can see these gross profits fluctuated these years due to net sales initially going down in year 13 and the up again by year 14; this was a minor fluctuation for the company as it only netted them a 5.5% loss over the three year period, and the associated expenses related to this loss will be discussed as well.
The net earnings show a significant loss over years 12 to 14 for the company. Starting with 160,500 in year 12 to 51,900 in year 13 and down to 14,475 by year 14. This is quite the drastic change over the few short years; in fact it shows almost a 99% decrease over the three years. This kind of decrease in net earnings could show that the company is less likely to

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