Assignment 1 F&A Research Paper Example | Topics and Well Written Essays - 500 words

Assignment 1 F&A - Research Paper sampleNonetheless, the executive ar predicting low consumer confidence and high unemployment rate as two most meaning(a) factors that will hinder the recovery of the retail industry. (KPMG, 2012) (Farfan, 2011)Note 1 to the financial statements provides a complete translation of the RadioShack deals business. The smart set deals in electronic items and services through 4,395 retail stores under its send name in the US. The company also operates in Puerto Rico, Virgin Islands and Mexico. In 2009, the company launched Target energetic Centers to increase their sales and revenue. However, due to its failure, the company has decided to wind up these centers by the first butt of 2013. It is very important to understand this note because its helps to identify and comprehend the business operations of the company and its prospective plans of discontinuation of any product line. (RadioShack Corp. Annual Report, 2012)Best Buy and Wal-Mart are two of the important competitors of RadioShack Corporation because they tend to have the uniform business as well as operate in the same environment. This will allow us to compare their financial and non financial metrics against each other such(prenominal) as profitability, efficiency, leverage and earning potential. Similarly, through a survey, the position of the RadioShack can be compared against its competitors in the consumers minds.Compared to the industry add up debt to total assets ratio of 0.72, RadioShack Corporation has a better financial position. The companys 61% of the assets are financed by debt. However, RadioShack Corporation is highly leveraged company as compared to industry benchmarks. The company has raise $1.58 of debt for every $1 of equity in the company as compared to $1.2 raised by the industry. This signifies an increased riskiness in the company and a poor rating amongst the external stakeholders. (Bloomberg Businessweek,