will have a moderate inventory (30% of projected sales) of pre-painted shirts and sweatshirts.This will tap into the market of those who like the clothing but are more spontaneous buyers.
While they are choosing their colors their shirt will be clipped and stretched on a cardboard board the same size as the shirt.
Close analysis will show that Clothes As Art's gross profit margin is 77% before tax, return on investment is 20%, and time interest earned is 2.0 for the first year.
According to Robert Morris and Associates' most recent studies, these ratios are at or above average for this type of company.
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