Business Administration 1220E Lecture Notes - Lecture 10: Solid Oxide Fuel Cell, Accounts Payable, Investment

• School: Western University
• Department: Business Administration
• Course: Business Administration 1220E
• Professor: Ethan Chochinov

Document Summary

Analysis of the statement of cash flows and ratios. Company is making money off day to day operations. This is good, because this means they are profitable doing their core business. A lot of cash is being tied up in debt. This is good, as it is bought with profits and not debts. Shows commitment to the company, all money is reinvested. Cogs (raw numbers) going up, but at a smaller margin than sales. Decrease in expenses as a percentage of sales. Salaries and wages are increasing at a smaller margin than sales o. Rent decreasing at a smaller margin than sales o. The company is really dependent on inventory, which is bad. However, owners are aware of this problem and are planning to introduce a new inventory control system. However, management is trying to bring this down. This is being stretched to try and match with inventory.