Provide an analysis on Apix’s assets, liabilities, cash, and profit. As well, choose 2 additional components on each of the sheets, and provide your initial impression on the company financial situation. Do you think you could handle this?

Slides with Applied Managerial Finance 10-15 with 150-200 words notes

Apix’s balance sheet shows that it has assets of $20.7 million, liabilities of $13.9 million, and cash of $1.3 million as of the end of 2021. For the same period, it also earned $2.6million in net profits (after taxes).

For each additional component on each sheet, I’d focus on Inventory and Accounts Receivable as well as accounts payable and long-term debt.

Analysis: Apix’s accounts receivable are relatively large at $8 million, which could be a sign that customers are taking longer to pay their invoices or that Apix is providing more credit than necessary to customers. In addition, inventory levels appear high compared to other companies in its sector with an amount equal to around 8 months worth at current sales rates – this may indicate overstocking or inefficient management processes.

The liability side of the equation is rather low, compared with industry averages. This could indicate that Apix is tightening financial controls. Long-term debt however is slightly more than average and may suggest some reliance upon external financing.

I believe Apix is a healthy company with good financial health. However, there are areas to be investigated such as the inventory turnover rate and accounts receivable to see if they can continue to operate efficiently in the future.

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