The Custom Shirt House Is Concerned About Its Declining Sales,especially

question 109

Essay

The Custom Shirt House is concerned about its declining sales,especially the reduction in the number of customers despite that its shirts have won industry awards for high quality and trend-setting styles.At the latest executive managers' meeting,everyone was blaming everyone else for the decline.After much discussion and presenting some fact-finding information,it was determined that sales relationships were the cause of most of the problems.
Required:
What may be some of the causes and how can the causes be detected if product quality is not an issue?
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Definitions:

Financing Activities

Transactions related to a company's raising and repaying of funds, including issuing debt, obtaining loans, and returning capital to shareholders.

Cash Dividend

A portion of a company's earnings that is paid to shareholders, typically in cash, as a return on their investment.

Operating Activities

Transactions related to the primary operations of a business, such as sales, purchases, and payroll, used in cash flow analysis.

Comparative Balance Sheet

Financial statement showing a company's assets, liabilities, and equity at two or more points in time, allowing for comparative analysis.