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Read the Information About Fellsmere Corporation

question 182

Essay

Read the information about Fellsmere Corporation.
Required:
A Did Fellsmere's current ratio increase or decrease from 2013 to 2014? Make any necessary calculations and
explain your answer. Which financial statement users are most concerned with this ratio?
B The balance sheets show a large increase in retained earnings during 2014. Identify the possible reasons for this increase.


Definitions:

Offshoring

Moving operations from the country where a company is headquartered to a country where pay rates are lower but the necessary skills are available.

Psychological Contract

The unwritten set of expectations between an employer and employee regarding mutual obligations.

Job Security

The likelihood of an individual to retain their job without the risk of becoming unemployed.

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