Ssc100 Research Success Assignment
Leon’s furniture is ranked number two hundred and ten on the globe and mail’s report on
business top 1000, earning a profit of $56,666. The focus of this report will be on the financial
position of Leon’s furniture. For any business, the financial position of the company will be
viewed by both internal and external users and stakeholders because it shows how well the
business is doing financially. The net income of the company will affect the financial position of
the business because based on the profit or loss incurred, it will define if the business is
successful or not. Moreover, shareholders will be interested in the financial statements since it
determines the earnings per share.
The first article is “Leon’s EPS falls 18.8% in Q2” which reports about the financial
situation of Leon’s and briefly explained the causes of the fall. Judging from the title of the
article, it is obvious that it will impact Leon’s furniture in a negative fashion. Sales are decreased
from $11.2 million to $9 million between 2011 and 2012 (Knell). This suggests that net income
and earnings per share has dropped significantly. It is reported that the decrease in sales is due to
the continuation of waning customer confidence, decrease in housing starts, and continued high
customer debt (Knell). Customer confidence plays a great part when customers are debating on
whether they should purchase the furniture or not. Since the world is still recovering from the
economic crisis years ago, the higher unemployment rates and lower GDPs will create less
customer confidence when a decision needs to be made. Hence, they are less likely to purchase
the products. The start of a decrease in housing means that less houses are being built compared
to before. Moreover, less new home owners will shop at furniture stores like Leon’s furniture. In
addition, high consumer debt nowadays is another reason why there’s a reduction in customer
business top 1000, earning a profit of $56,666. The focus of this report will be on the financial
position of Leon’s furniture. For any business, the financial position of the company will be
viewed by both internal and external users and stakeholders because it shows how well the
business is doing financially. The net income of the company will affect the financial position of
the business because based on the profit or loss incurred, it will define if the business is
successful or not. Moreover, shareholders will be interested in the financial statements since it
determines the earnings per share.
The first article is “Leon’s EPS falls 18.8% in Q2” which reports about the financial
situation of Leon’s and briefly explained the causes of the fall. Judging from the title of the
article, it is obvious that it will impact Leon’s furniture in a negative fashion. Sales are decreased
from $11.2 million to $9 million between 2011 and 2012 (Knell). This suggests that net income
and earnings per share has dropped significantly. It is reported that the decrease in sales is due to
the continuation of waning customer confidence, decrease in housing starts, and continued high
customer debt (Knell). Customer confidence plays a great part when customers are debating on
whether they should purchase the furniture or not. Since the world is still recovering from the
economic crisis years ago, the higher unemployment rates and lower GDPs will create less
customer confidence when a decision needs to be made. Hence, they are less likely to purchase
the products. The start of a decrease in housing means that less houses are being built compared
to before. Moreover, less new home owners will shop at furniture stores like Leon’s furniture. In
addition, high consumer debt nowadays is another reason why there’s a reduction in customer