Description: One thing the Corona virus seems to have done in Canada is that it created a building boom with Canadians assembling IKEA desks to beat the band. During the pandemic, Canadians purchased 631,800 desks, presumably to help them work at home during this time. This outfitting of home offices has been a welcome boost for the Swedish firm as overall sales are down 8.7 percent. To IKEA’s credit though, they have not laid off a single employee.
Date: November 19, 2020
1) Are you familiar with IKEA furniture? Do you have any in your living quarters?
2) Have you ever assembled IKEA furniture? How did your project go?
3) Chapter 7 in Wiley’s Financial Accounting: Tools for Business Decision-Making we read of a variety of strategies for cash management. If you were an accountant working for IKEA, what strategies would you advise the company to use during this time of sales decline?