4-Horizon Imports (2)

4-Horizon Imports (2) - HORIZON IMPORTS INC Horizon Imports...

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HORIZON IMPORTS, INC . Horizon Imports, Inc. is a San Diego-based importer/wholesaler of home entertainment products. The majority of Horizon’s imports are name brand Japanese home audio/video systems. Most of Horizon’s customers are located along the West Coast. Joseph Barnard, credit manager of Horizon Imports, Inc., was reviewing the financial statements of major accounts in March 1982. In particular, Mr. Barnard was concerned with the performance of two long time customers—Symphony Sound in Los Angeles and Entertainment Systems, Inc. in San Francisco. The recent economic downturn had hit the home entertainment industry hard. Recent changes in Symphony Sound’s and Entertainment Systems’ financial statements called into question their financial soundness. Customer Background Entertainment Systems, Inc. retailed a broad line of home entertainment systems throughout the greater San Francisco Bay area. Founded in early 1975, Entertainment Systems had experienced rapid growth—growing from an initial one-store operation to a chain of 9 stores by late 1980. Sales for Entertainment Systems were usually steady throughout the year. Approximately one third of the sales were for cash and the other two thirds on monthly
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4-Horizon Imports (2) - HORIZON IMPORTS INC Horizon Imports...

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