Crystal, Inc ​
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-Read the Information About Huntington Corporation

question 203

Essay

Crystal, Inc.reported $52,000 of net income for 2016.Crystal's balance sheet at December 31, 2016 includes the following amounts: $$\begin{array} { l r l r } \text { Wages payable } & \$ 1,000 & \text { Inventory } & \$ 26,000 \\\text { Prepaid rent } & 3,000 & \text { Land } & 40,000 \\\text { Cash } & 15,000 & \text { Accounts receivable } & 22,000 \\\text { Accounts payable } & 25,000 & \text { Capital stock } & 40,000 \\\text { Retained earnings } & 29,000 & \text { Income taxes payable } & 11,000\end{array}$$ ​
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-Read the information about Huntington Corporation.
Required:
Compare the profit margins for 2017 and 2016.Is the company becoming more or less profitable or staying the same? What could be contributing to this?

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Definitions:

Organizations

Entities that are structured and managed to meet a need or pursue collective goals on a continuing basis.

Corporate Restructuring

The process of significantly changing the structure, operations, or financial setup of a corporation to increase its profitability or efficiency.

Managerial Incompetence

A lack of the necessary skills, abilities, or knowledge for effective management and leadership within an organization.

Employee Resistance

Opposition or pushback by employees against changes or policies implemented by management, often due to fear of the unknown or loss of status.