Please see attachment caused the cost of goods sold to increase by $125,000 from

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Please see attachment

caused the cost of goods sold to increase by $125,000 from the projections in part (a), what effect would it have on the company's financial position? Change, one by one, the other items in part (c) to see how each change affects the ratio analysis. Then think about and write a paragraph describing how computer models such as this one can be used to help make better decisions about the purchase of such items as a new computer system Industry average ratios have been constant for the past four years. "Based on year -end balance sheet figures. Suppose Cary Corporation is considering installing a new computer system that would provide tighter control of inventories, accounts receivable, and accounts payable. If the new system is installed, the following data are projected (rather than the data given earlier) for the indicated balance sheet and income statement accounts: How do these changes affect the projected ratios and the comparison with the industry averages? (Note that any changes to the. income statement will change the amount of retained earnings; therefore, the model is set up to calculate 2013 retained earnings as 2012 retained earnings phi S net income minus dividends paid. The model also adjusts the cash balance so that the balance sheet balances.) If the new computer system were even more efficient than Cary's management had estimated and thus caused the cost of goods sold to decrease by $125,000 from the projections in part (c), what effect would it have on the company's financial position? If the new computer system were less efficient than Cary's management had estimated and The problem requires you to use File C02 on the computer problem spreadsheet. Cary Corporation's forecasted 2013 financial statements follow, along with industry average ratios. Calculate Cary's 2013 forecasted ratios, compare them with the industry average data, and comment briefly on Cary's projected strengths and weaknesses What do you think would happen to Cary's ratios if the company initiated cost -cutting measures that allowed it to hold lower levels of inventory and Substantially decrease. the cost of goods sold? To answer this questio11, suppose inventories drop to $700,000 and the inventory turnover remains the same as when inventories were $894,000.

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