Review the chapter’s opening feature involving Games2U. Assume that the company currently has net sales of $8,000,000, and that it is planning an expansion that will increase net sales by $4,000,000. To accomplish this expansion, Games2U must increase its average total assets from $2,500,000 to $3,000,000.
Required Compute the company’s total asset turnover under (a) current conditions and (b) proposed conditions.
Write a memo to Stuart and David in Word. Evaluate and comment on the merits of the proposal given your analysis above. Identify concerns that you, as their advisor, have about the proposal.
You will be graded on how well you address the questions. Addressing the questions involves identifying relevant facts, applying the chapter concepts,, and answering each question completely. Proper APA formatting is expected and required (cited sources, reference page, etc.). Supplement and synthesize your analysis with outsides scholarly sources. For assistance with APA citations, please visit the following links: The American Psychological Association Website:http://www.apastyle.org/
The APA site has numerous links (see â€œmost popularâ€), but you may want to view the tutorial if you are completely new to APA: http://www.apastyle.org/learn/tutorials/basics-tutorial.aspx
Note: This assignment will be submitted for plagiarism detection. You may not copy and paste any part of your submission, (not even from the text book) unless it is quoted and cited, see APA above. Your submission must return less than 20% similarity index in order to be graded.
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