Red Flags Case Analysis
You do volunteer work for a local hospital auxiliary. The hospital supplies the stock to be sold at its gift shop. Even though the hospital is a not for profit organization, the goal of the gift shop is to break even or even earn a profit.
Unfortunately, the gift shop has been losing money for the hospital for quite some time. Since you have now have graduated with an Associates degree from Kaplan University, the Gift Shop Manager has asked you to examine the financial statements for the past five years to see if you can suggest any ways to improve the bottom line.
In your analysis, you discover the following six "Red Flags."
Red Flag 1
Although the revenue on snack food decreases every year, the cost of goods sold increases every
Unfortunately, the gift shop has been losing money for the hospital for quite some time. Since you have now have graduated with an Associates degree from Kaplan University, the Gift Shop Manager has asked you to examine the financial statements for the past five years to see if you can suggest any ways to improve the bottom line.
In your analysis, you discover the following six "Red Flags."
Red Flag 1
Although the revenue on snack food decreases every year, the cost of goods sold increases every