Fin%204260%20Case%20#1%20Sp%2012

Fin%204260%20Case%20#1%20Sp%2012 - FIN 4260 Short-Term...

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Case #1 – Spring 2012 O VER THE PAST FEW YEARS , YOUR FIRM HAS EXPERIENCED RAPID SALES GROWTH , RESULTING IN THE ATTENTION OF MANAGEMENT BEING FOCUSED ON GROWING SALES , CAPTURING MARKET SHARE , AND MEETING CUSTOMER DEMAND . Y OU HAVE BEEN ASKED TO DIAGNOSE THE SHORT - TERM FINANCIAL HEALTH OF YOUR FIRM . Y OU CONDUCT A THOROUGH REVIEW OF THE FIRM S FINANCIAL STATEMENTS AND WORKING CAPITAL MANAGEMENT PRACTICES . I NDUSTRY BENCHMARKS ARE PROVIDED IN MANY CASES . The most recent three years of financial statements are below: Balance Sheets 2011 2010 2009 Assets Cash 25,000 $ 50,000 $ 100,000 $ Accounts Receivable 3,000,000 $ 2,000,000 $ 1,200,000 $ Inventory 2,500,000 $ 1,400,000 $ 800,000 $ Total Current Assets 5,525,000 $ 3,450,000 $ 2,100,000 $ Gross Fixed Assets 2,500,000 $ 1,500,000 $ 1,500,000 $ Accumulated Depreciation (550,000) $ (400,000) $ (350,000) $ Net Fixed Assets 1,950,000 $ 1,100,000 $ 1,150,000 $ Total Assets 7,475,000 $ 4,550,000 $ 3,250,000 $ Liabilities and Equity Accounts Payable 1,226,000 $ 700,000 $ 400,000 $ Accrued Expenses 80,000 $ 70,000 $ 60,000 $ Short-Term Debt (N/P) 1,550,000 $ 598,000 $ 1,092,000 $ Current Maturities LTD 200,000 $ 50,000 $ 50,000 $ Total Current Liabilities 3,056,000 $ 1,418,000 $ 1,602,000 $ Long-Term Debt 2,315,000 $ 1,508,000 $ 330,000 $ Total Liabilities 5,371,000 $ 2,926,000 $ 1,932,000 $ Owners' Equity Total Stockholders’ Equity 2,104,000 $ 1,624,000 $ 1,318,000 $
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Fin%204260%20Case%20#1%20Sp%2012 - FIN 4260 Short-Term...

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