When looking at Classic Fixtures & Hardware Company’s financial statements there are many aspects that they could change to help them pay off their loan to Southwest National Bank. The first aspect would be Classic Fixture inventory amount. In 2008, each month their inventory amount kept increasing until June when it started to decrease. When looking at the reported information for home improvement and new construction industries and seeing that compared to the year before their numbers were drastically less and that each year home improvements have been decreasing at a steady rate. These should have been indicators for Classic Fixtures to base their inventory amounts off of. If they had less inventory on hand, expenses would be lower to store
