¶ … Mall's Revenues
Identify what seem to be the important trends in TechMall's financial statements. Are these trends consistent with TechMall's strategy and the economics of a growing company?
The trends that seem to be occurring are that Tech Mall is seeing slower levels of growth. This is taking place with less merchants signing up for the service (which is resulting in lower revenues for this segment). Evidence of this can be seen by looking at the below table which is showing the total number of merchants in comparison with revenues from the setup fee. (Swain, 2012)
Merchants vs. Revenues from the Set Up Fee
Merchant Set Up Fee Revenues
Merchants
$1.948 million
$3.088 million
4,751
4
$2.831 million
4,883
(Swain, 2012)
These numbers are illustrating how the amount of new merchants signing up is decreasing from 46.6% growth (in year 3) to 2.71%...
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