Question: The Corrigan Corporation's forecasted 2007 financial statements follow, along with some industry average ratios.
a. Calculate Corrigan's 2007 forecasted ratios, compare them with the industry average data, and comment briefly on Corrigan's projected strengths and weaknesses.
b. What do you think would happen to Corrigan's ratios if the company initiated cost-cutting measures that allowed it to hold lower levels of inventory and substantially decreased the cost of goods sold? No calculations are necessary. Think about which ratios would be affected by changes in these two accounts.
