Case 3 Using Case in the Book: Bluffton Pharmacy – Part 1& 2
Write a 3 page memo covering the below questions. Include and refer to Exhibits on the ratios and cash budget.
1.Calculate the twelve ratios for Bluffton Pharmacy for this year.
2. Develop a monthly cash budget for Bluffton Pharmacy for the upcoming year.
3. How do the ratios you calculated for this year compare to those for the pharmacy last year? What factors are most likely to account for those changes?
4. If you were Bluffton Pharmacy’s banker, would you be comfortable extending a line of credit to the pharmacy?
5. Develop a set of recommendations for improving the financial performance of Bluffton Pharmacy using the analysis you conducted in questions .