Environmental scanning involves monitoring developments within a firm's control to evaluate the firm's strengths and weaknesses.
Answer the following statement true (T) or false (F)
False
If a firm wants to detect and respond to threats and opportunities, it needs to monitor developments outside of the firm's control, a process called environmental scanning.
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Which error is the tendency to highlight certain aspects of a situation, either positive or negative, to solve a problem while ignoring other aspects?
a. Lack of participation b. Framing c. Uncertainty d. Randomness
The manager’s ____ involve using information, contacts, and relationships to allocate limited resources, solve conflict-laden situations, and initiate problem-solving solutions.
a. Decisional roles b. Functional roles c. Required roles d. Informational roles
The Environmental Protection Agency was investigating whether Exgrow, Inc. violated the Clean Air Act. Exgrow refused to give the EPA its computerized reports concerning pollution. To get the reports, the EPA should use a(n)
A. stare decisis. B. de novo. C. excaliber. D. subpoena duces tecum.
Income statement and balance sheet data for The Sports Shack are provided below. The Sports ShackIncome StatementsFor the years ended December 31?20222021Sales revenue$8,200,000$6,600,000Cost of goods sold6,100,0004,700,000Gross profit2,100,0001,900,000 Expenses:?? Operating expenses1,450,0001,400,000 Depreciation expense90,000100,000 Interest expense25,00050,000 Income tax expense95,00080,000 Total expenses1,660,0001,630,000Net income$440,000$270,000The Sports ShackBalance SheetsDecember 31Assets202220212020Current assets:??? Cash$290,000$218,000$196,000 Accounts receivable1,050,000680,000880,000 Inventory919,0001,250,0001,100,000 Supplies80,00090,00065,000Long-term assets:???
Equipment1,100,0001,200,000(250,000) Less: Accumulated depreciation(440,000)(350,000)(250,000)Total assets$2,999,000$3,088,000$2,891,000Liabilities and Stockholders' EquityCurrent liabilities:??? Accounts payable$50,000$65,000$55,000 Interest payable2,0004,0006,000 Income tax payable38,00040,00030,000Long-term liabilities:??? Notes payable200,000400,000300,000Stockholders' equity:??? Common stock900,000900,000900,000 Retained earnings1,809,0001,679,0001,600,000Total liabilities and equity$2,999,000$3,088,000$2,891,000Required: 1. Calculate the following risk ratios for 2021 and 2022 (round to one decimal place). Receivables turnover ratioInventory turnover ratioCurrent ratioDebt to equity ratio2. Calculate the following profitability ratios for 2021 and 2022 (round to one decimal place). Gross profit ratioReturn on assetsProfit marginAsset turnover3. Based on the ratios calculated, determine whether overall risk and profitability improved from 2021 to 2022. What will be an ideal response?