Accounting Question

Review Case 12.21 in your textbook. Share your observations and recommendations for the company based on the data provided. Please review the posts of your classmates before responding to Case 12.21; provide responses that are different than what your classmates’ have posted and recommended.

To participate in follow up discussion, ask questions and post comments regarding classmates’ posts or respond to follow-up questions posted by the instructor.Please include proper citations in your discussion post. Points will be deducted if proper citations are not used.Submitted on:Mar 28, 2024, 1:54 PMVIEW DQ RESPONSEJCJulia CaddowMar 30, 2024, 8:55 AMUnreadIn Case 12.21, Managerial Accounting requests a comparison of C&C sports to the industry average along with recommendations for George Douglas, president of C&C Sports (Davis & Davis, 2020). Viewing industry data helps managers gain an understanding of the company’s competitive market and gives an edge during the financial analysis (Davis & Davis, 2020). C&C Sports sells baseball uniforms, which means they will view industry data from the U.S. Census for men’s and boys’ team sports uniforms as a whole (Davis & Davis, 2020). This industry data can be viewed in detail in exhibit 12.10 of Managerial Accounting, but the highlights of this data include a fairly consistent pattern with an increase in 2003, a decrease in 2006, an increase in 2008, a decrease in 2011, and a final increase in 2016 (Davis & Davis, 2020).Looking at exhibit 12.9, we find the C&C Sports industry data which reports selected percentages and statistics (Davis & Davis, 2020). This chart includes data in a plethora of categories including cash and equivalents, inventory, and gross profit over the years of 2012 to 2017 (Davis & Davis, 2020). For example, the select common-size percentages from 7.9% in 2012, increased to 11% in 2016 and sharply decreased to 6.6% in 2017 (Davis & Davis, 2020). Under, long-term debt, we found 9.6% in 2012, 11.8% in 2013, 6.9% in 2014, and 12.6% in 2017 (Davis & Davis, 2020). This data and other figures give important analysis for George Douglas about key financial details. One recommendation I would give to Douglas would be to acquire additional data on C&C sports and industry data that are more comparable. While both forms of data are beneficial, comparing the two is a challenge due to their differences. For example, the industry data was reported as a value of the uniforms in millions while the C&C sports data was presented as ratios (Davis & Davis, 2020). Additionally, the years for C&C sports are from 2012 to 2017 while the industry data is from 2000 to 2016 (Davis & Davis, 2020). Having the data overlap in years would be helpful to ensure it is a full and direct comparison (Davis & Davis, 2020). Gathering more data would further help Douglas with his comparison between C&C sports and the industry averages.Davis, C. E. & Davis, E. (2020). Managerial accounting. Wiley & Sons, Inc.REPLY