“Pre-Tax Net Income: Year Plan vs. Actual + SRO” Chart Discussion Prior to beginning work on...

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“Pre-Tax Net Income: Year Plan vs. Actual + SRO” Chart Discussion     Prior to beginning work  on this discussion thread, read How healthy is your business? 6 ways to  take its ‘temperature’ and Why 70% of companies paid zero in corporate  taxes: They had zero profits. Hisco's owner, Stan Sloane, would like to  know what you've learned so far in the process of running the company  that might benefit other employees/students concerning pre-tax income  and its importance. Meet with two other employees/students and share  ideas that could help others in a similar employment position as you.

Preeta · Accepted Answer

There are six ways to determine the health of the company and based on that future targets are being made (Biory & Stats, 2013). The six ways are six fincial ratios, which are quick ratio, current ratio, inventory days, accounts receivable and payable days. These ratios show how effectively the business is operating and a glimpse into the future performance of the business.  
But future planning cannot be perfect and so there is always a difference between the target figures and the actual figures.

“Pre-Tax Net Income: Year Plan vs. Actual + SRO” Chart Discussion Prior to beginning work on this discussion thread, read How healthy is your business? 6 ways to take its ‘temperature’ and Why 70% of...

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