The company has a well-developed organization structure with clear lines of authority
among the various operating departments and staff functions. The organizational structure is
appropriate for EarthWear’ activity.
The major assets of the company are inventory, property, plant, equipment, and its
customer mailing list. The company has no long-time debt. However, it maintains a line of credit
for financing purchases during the peak purchasing season. The company uses its line of credit to
meet it normal financing activities. Overall, the company’s financing condition is good.
EarthWear markets high quality clothing for outdoor sports, casual clothing, accessories,
shoes, and soft luggage. The company manages its business in three operating segments
consisting of core, business-to-business, and international. The company’s primary market is the
United States; other markets include Canada, Europe, and Japan (Messier, Glover, and
Prawitt.).
EarthWear’s management has created an atmosphere where internal control is taken
seriously. Management is very concerned about misstatements due to error or fraud. The
company uses conservative accounting policies and they are conscientious about developing
accounting estimates.
The company manages its business risks through a business plan and a strong budgeting
process. Senior management meet at least monthly to discuss the budget and events that might
affect the company. The company also has a Strategic Risk Management Committee that is
responsible for considering how future events may affect the company.
We are knowledgeable about our client. We serve our client to the very best of our ability
and we devote time to truly identify their real needs and subsequently provide them with high
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