Essay --

1.Operational Strengths and Weaknessesa.Horizontal synopsisThis type of analysis compares the percent and amount of changes from grade to year. The analysis is performed on both the income statement and balance sheet to detect trends and identify some(prenominal) issues. This can be a very useful analysis in particular when more than than two years of data is available. With this analysis and various others a good understanding of how the gild is operating can be seen. tax SectionThe income statement shows both strengths and weaknesses. There is a jump in terminal gross sales from year 6 to year 7 by 33% this is a substantial addition for the ships confederacy and strength. In year eight compared to year seven, the social club has seen a decrease in net sales by 15%. Net sales show to be rather unstable and a possible source of weakness as well. The reduction in revenue is ultimately due to the current sparing situations which could be attributed to funding cuts by spon sors for some of the riders. This kind of up and drop in net sales may be common for the company over the years to come. The company should also consider having a harvest-festival to balance this out. Since their important source of sales is a specialty keepsake it would benefit the company to have additional products that are more main stream to even out sales in the future. However, unit sales will most likely stay below year fan tan high of 4,342,000, it is expected that unit sales will increase over the next terce years to make up for its decline in year eight. Cost of good sold has moved with the net sales, which is a positive note. This means the company is not spending more on products than sales allow, and purchasing is projecting accurately. However, there may be opportunity for the company to reduce the ... ...to reduce interest can help increase this ratio, as well as increasing sales.Overall all in the ratio analysis the company has several areas of strengths an d several areas of weakness. It would benefit the company to reduce their expenses and increase sales to improve these numbers over time. The company is also struggling to keep up with competitors in several areas, and oftentimes of that could be combated with increased sales and better expense control.2.Working bullyCurrently Competition Bike Inc. working capital is positive. The company has more assets than they do liabilities. The company has seen a decrease in their assets in the move year but the companys liabilities have also decreased. The companys working capital ratio has remained around 2.1 for the last three years. This is very positive for the company, a ratio between 1.2 to 2.0 is recommended.