Analyse the company and industry data to identify at least three things that went wrong and suggest actions (with reasons) that Berocca plc ought to take to reduce losses and achieve profitability.
ASSETSBerocca plc(£)Industry averageProperty, plant & equipment (net)189,00015.20%Other Assets60,0006.50%Current Assets249,00021.70%Inventory963,00060.50%Trade receivables (net)228,00011%Prepaid expenses15,0000Cash and short-term investments45,0006.80%1,500,000100%EQUITYOrdinary shareholders’ equity514,50036.60%LIABILITIESLong term debt 11%295,50016.40%Current liabilitiesAccounts payable316,50025.10%Accrued liabilities117,0007.90%Notes payable, short term, 12%256,50014%1,500,000100% Page 2of 4Income Statement extractsBeroccaplc (£)Industry averageNet sales750,000100%Cost of sales-511,500-64.80%Gross Profit238,50035.20%Operating expenses-278,250-32.30%Operating income (loss)-39,7502.90%Interest expense-43,500-1.30%Other revenue8,2500.30%Income (loss) before income tax-75,0001.90%Income tax (expense) saving33,000-0.80%Net income (loss)-42,0001.10%Required:As the above data […]