SureCut trim, Inc.
___________________________________________________________
Executive Summary
The case is about estimating fund requirements for short termination sources of finance. In June 1995, Mr. Fisher, treasurer of SureCut Shears arranged a key out of credit of $3.5 one million million with the Hudson interior(a) Bank to cover the seasonal worker sales peak. later going with the analysis, much of these funds were use to fund the capital modernication program. Facing the declining sales, SureCut is facing difficulty in paying its short term loan obligations to Hudson National Bank. After thorough analysis, the need for short term fund requirements should non be used in capital expenses since the cash unavoidable to repay the short term fund requirements comes from the sales of stemma which was the intention of the additional cash to stock up much inventory. Proper utilization of funds is a must for SureCut to be able to manage its payables to its business partners.
Case Context
SureCut Shears, Inc. manufactures a plump out line of household scissors and industrial shears. Their products are distributed with wholesalers to specialty, hardware and department stores around the country. In June 1995, Mr.
Fisher, treasurer of SureCut Shears arranged a line of credit of $3.5 million with the Hudson National Bank to cover requirements for the fall anticipating that the loan would be to the full paid off by December of the same year. In September 2005, Mr. Fisher called Mr. Stewart of Hudson National Bank to inform him that the caller-out would need an additional $350,000 to cover peak seasonal needs. In January 1996, there was a decrease in sales demand. In April 1996, Mr. Fisher called Mr. Stewart to tell him that SureCut Shears would not probably be able repay its outstanding short-term loan of $1.14 million in June.
Problem Definition
What factors contributed to the reasons behind SureCuts inability to...If you loss to get a full essay, order it on our website: Ordercustompaper.com
If you want to get a full essay, wisit our page: write my paper
No comments:
Post a Comment