The nature of business of Electronics World is that they are the leading specialty retailer of consumer electronics and home entertainment products such as high-quality audio, video, television and mobile electronics in the US.
The Electronics World’s the main source of fund is their liquidity which have been net cash from operations revolving credit lines, long-term debt and issuance of common stock as well as their cash requirement which have been from their expenditures for opening of new stores and through reestablishing the existing to be competent enough for the upcoming seasons. This led to various outcomes. In fiscal 2015, operating activities were higher than the previous year however, Electronics World’s investing activities were lower than the previous because of the expenditures on opening new stores and new management information system. Also, the net cash provided by the financing activities were lower than the previous due to borrowings under their revolving credit lines. They anticipated that if their sales would continue to decrease or their inventories would continue to increase, they will have lesser amounts feasible enough that would fund their operations and borrowings.