Pitts Incorporated Owns a Chain of Retail Stores

question 77

Essay

Pitts Incorporated owns a chain of retail stores. During December of 2017, a customer slipped in a doorway of its Nebraska store and broke his ribs. He is suing Pitts for $200,000 for negligence. The legal counsel of Pitts believes that it is remote that Pitts will lose its defense of the lawsuit because the doorway recently was rebuilt with all-weather traction stripping and a sign on the door warned customers that the doorway was slippery when icy. On December 30, 2017, before considering the effects of this lawsuit, the company's current assets, total assets, current liabilities, and total liabilities were $420,000, $840,000, $100,000, and $300,000, respectively. After this event is properly accounted for, calculate the company's debt/equity ratio on December 31, 2017.

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Definitions:

Marketing Mix

The set of actions, or tactics, that a company uses to promote its brand or product in the market, commonly identified as the 4Ps: Product, Price, Place, and Promotion.

Human Skill

The ability to work effectively with people, managing interpersonal relationships and communication.

Analytical Ability

The capacity to understand and dissect complex information, problems, or data, and make reasoned decisions or insights based on that analysis.

Selling Techniques

Selling techniques are strategies and methods used by sales professionals to convince customers to purchase products or services.