Ed Ng Is a Friend of Yours from University

question 20

Essay

Ed Ng is a friend of yours from university.After finishing high school he decided to open his own human resources consulting business rather than working for a large bureaucratic organization.He recently opened his business,and has contracted his services to a number of local retailers.He is paid a monthly fee for his services.
He has just received his first set of financial statements from his accountant.He is quite upset.The statements show a cash balance of $7,200 at the end of the month,but a net income of only $1,000.He has written you a letter,asking you whether such a situation is possible,or whether he should find another accountant.
Please explain to Ed what happened.

Identify the significance of strengths-based leadership in enhancing team productivity.

Understand the role of participative management and its effect on employee commitment and creativity.

Understand the impact of social connections and belonging on workplace motivation and engagement.

Understand the importance of matching job applicants' qualities with job requirements for organizational success.

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Definitions:

Inventory Turnover

A measure of how quickly a company sells its stock of goods in a period, calculated by dividing the cost of goods sold by the average inventory level.

Equity Multiplier

A financial leverage ratio that measures the portion of a company's assets that are financed by shareholders' equity.

Debt-to-equity Ratio

The ratio that demonstrates the comparative financing from shareholders' equity and debt for a company's assets.

Times Interest Earned Ratio

The Times Interest Earned Ratio measures a company's ability to meet its debt obligations by comparing its income before interest and taxes to its interest expenses.