1.) Luna Lighting, a retail firm, has experienced modest sales
growth over the past three years buy has had difficulty translating
the expansion of sales into improved profitability. Using three
years’ financial statements, you have developed the following ratio
calculations and industry comparisons. Based on this information,
suggest possible reasons for Luna’s profitability problems.
2016
2015
2014 Industry Averages
2016
Current
2.3X
2.3X
2.2X
2.1X
Average collection period
45 days
46
days 47
days ...