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Decision$-$Making Across the Organization

CT$6.7$ Solar Electronics has enjoyed tremendous sales growth during the last $10$ years. However, even though sales have steadily increased, the company's CEO, Dana Byrnes, is concerned about certain dents of finance, operations, saled a meeting with the corporate controller and the vice presithe meeting by making the following observations:

We have been forced to take significant write$-$downs on inventory during each of the last three years because of obsolescence. In addition, inventory storage costs have soared. We rent four additional warehouses to store our increasingly diverse inventory. Five years ago inventory represented only $\backslash (20\backslash \%\backslash )$ of the value of our total assets. It now exceeds $\backslash (35\backslash \%\backslash ).$ Yet, even with all of this inventory, "stockouts" $($measured by complaints by customers that the desired product is not available$)$ have increased by $\backslash (40\backslash \%\backslash )$ during the last three years. And worse yet, it seems that we constantly must discount merchandise that we have too much of$.$

Dana asks the group to review the following data and make suggestions as to how the companys performance might be improved.

Instructions

Using the information provided, answer the following questions.

a$.$ Compute the current ratio, gross profit rate, profit margin, inventory turnover, and days in inventory for $2023,2024,$ and $2025.$

b$.$ Discuss the trends and potential causes of the changes in the ratios in part $($a$).$

c$.$ Discuss potential remedies to any problems discussed in part $($b$).$

d$.$ What concerns might be raised by some members of management with regard to your suggestions in part c$?$

Please explain option B$,$ C$,$ and D in letter format!!!!

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