SureCut

SureCut - SureCutShears,Inc. ClicktoeditMastersubtitlestyle...

Info iconThis preview shows pages 1–7. Sign up to view the full content.

View Full Document Right Arrow Icon
Click to edit Master subtitle style   SureCut Shears, Inc. Erica Freebury Peter Yanbo Zhang September 29, 2009
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
  Company Background Manufacture household scissors and industrial  shears Profitable company since 1958 Historically held large deposit balances in banks Severe competition, especially from international  companies Policy of level production and a seasonal sales  pattern
Background image of page 2
  Main Problems Unable to liquidate its outstanding seasonal loan  Short-term borrowings from banks confined to  July-December of each year Higher expenditures for plant modernization  than expected Retailing recession-January-April, 1996
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
  Timeline of Loans 1. June 1995 - $3.5 million – Until December 1995  (seasonal sales peak) 2. June 1996-$1.0 million (forecast) 3. September 1995 – Additional $0.35 million until  December 1995 (modernization) 4. January 1996 – Extending loan funds until April  1996 (recession) 5. April 1996 – Extending until June 1996 (recession)
Background image of page 4
  Company’s Understanding Sufficient capital to cover long-term  requirements over the immediate future.  Need short-term borrowings and additional  working capital in seasonal sales peak.  Anticipated the loan would be paid off by  December 1995 But it required additional loan and extended loan funds until June 1996. 
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
  Case Questions Is the company’s inability to pay off the loan due  to the plant modernization program?
Background image of page 6
Image of page 7
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 10/20/2010 for the course FINA 124 taught by Professor Ismaildalla during the Spring '10 term at GWU.

Page1 / 15

SureCut - SureCutShears,Inc. ClicktoeditMastersubtitlestyle...

This preview shows document pages 1 - 7. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online