Communication: Fast Express specialises in the transportation of medical equipment and laboratory specimens overnight. The company has selected the following information from its most recent annual report to be the subject of an immediate press release.
• The financial statements are being released.
• Profit this year was $2.1 million. Last year's profit had been $1.8 million.
• The current ratio has changed to 2:1 from last year's 1.5:1.
• The debt/total assets ratio has changed to 4:5 from last year's 3:5.
• The company expanded its truck fleet substantially by purchasing ten new delivery vans.
• The company already had twelve delivery vans. The company is now the largest medical courier on the Eastern seaboard.
Required: Prepare a brief press release incorporating the information above. Include all information. Think carefully which information (if any) is good news for the company, and which (if any) is bad news.

Question

Quizplus · Accepted Answer

The Answer of Communication: Fast Express specialises in the transportation of medical equipment and laboratory specimens overnight. The company has selected the following information from its most recent annual report to be the subject of an immediate press release.
• The financial statements are being released.
• Profit this year was $2.1 million. Last year's profit had been $1.8 million.
• The current ratio has changed to 2:1 from last year's 1.5:1.
• The debt/total assets ratio has changed to 4:5 from last year's 3:5.
• The company expanded its truck fleet substantially by purchasing ten new delivery vans.
• The company already had twelve delivery vans. The company is now the largest medical courier on the Eastern seaboard.
Required: Prepare a brief press release incorporating the information above. Include all information. Think carefully which information (if any) is good news for the company, and which (if any) is bad news.

Communication: Fast Express Specialises in the Transportation of Medical Equipment