occurrence Study
Ardmond Pree
University of Phoenix
Dr. Robert Mayfield
FIN 370
Case Study
In the Case Study for beating-reed instruments Clothier, Jim reed instrument II has allowed what once was considered deem competent-bodied business practice to drastically affect his business. Jims unread decision to join on stock-taking has snowballed into insurmountable debt. Instead of realizing his friendship was in a financial bind, Reed decided to thieve his banking bon ton which has been the companys bank since being founded, for an increase in his line of credit. With forward-looking management in place, the bank no longer does business like the days of old. Harold Holmes, the new banker in charge of the Reed floor requests to see company books and after examining what Reed presented, decided to deny the increase in the Reed credit line. Additionally, Reed owes the bank in unornamented of $100,000 which Holmes has requested payment within 30 days.
Holmes suggested changes Reed could baffle to make his business profitable again and be able to stay on top of debt. These changes included hiring a adviser to overlook the financial and inventory aspects of the business, and reducing inventory and account receivables to the industry average.
Upon reviewing the balancer sheet, Holmes suggested accounts receivable being considerably reduced, since this was an champaign which was controllable.
Sales get out be impacted by this remove although sale stabilization will occur over time. Conceivably, 1 could think that this is a no brainer and follow the recommendations. But separate factors are not being considered. The turnaround time for Reed is shorter because the store has everything on hand as opposed to otherwise stores which may take orders on specialty items.
Having discounted sales will help Reed move older inventory and inventory not as in demand anymore. For example, larger retail stores and even wholesale stores designate individuals to oversee inventory and accounts...If you extremity to get a full essay, order it on our website: Ordercustompaper.com
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