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1. "Reed's Clothier" Case Study and Questions 
Prepare a 500-700-word case study analysis of Case #XXXXX: "Reed's Clothier" located in the Cases in Financial Management text, by Sulock and Dunkelberg. Be sure to address the following in your analysis: 


a. Briefly summarize the case. 



b. Formulate answers to questions 1, 2, 3, 4, 5, 6, 7, and 8. 



QUESTIONS 
1. Calculate a few ratios and compare Reed's results with industry averages. 
(Some industry averages are shown in Exhibit 4.) What do these ratios indicate? 
2. Why does Holmes want Reed's to have an inventory reduction sale, and what does he think will be accomplished by it? 
3.XXXXX XXXXX had adopted a very loose working capital policy with higher current assets than industry averages. If he merely tightens his working capital policy to the averages, should this affect his sales? 
4. Assuming that Reed's can improve its operations to be in line with the industry averages, construct a 1995 pro forma income statement. Assume that net sales will be reduced 5 percent to $1,938,000 but that depreciation and amortization will not change but remain at $32,000. 
5. What type of inventory control system would you suggest to XXXXX XXXXX? 
6. What type of accounts receivable control would you suggest to XXXXX XXXXX? 
7. Is the increase in sales related to the incre