Essay on Case 4

624 Words Mar 18th, 2012 3 Pages
The company have also poorly forecasted sales from January to August ($11.9) with actual sales amounting to $8.7m. The company wants to borrow more money because it wants to buy new machinery at a cost of $350k and this is due to no machinery being replaced because of the economic downturn.
The company purchased $420k worth of raw materials, which it will use by the end of the year. There was a substantial backlog of orders amounting to $16.5m on 31st August. There was a missing piece of electronic equipment to finish some machines valued at $1,320,000, which was due to arrive and then the orders can be finished. The company needs to stay cash positive on a daily basis in order to finance its operations and business expansion. Based on
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$72 | -$138 | $145 | $223 | $541 | Net income | $145 | $58 | $78 | -$149 | $230 | $242 | $586 | | | | | | | | | Dividends | $100 | $0 | $0 | $0 | $0 | $0 | $150 | Earnings retained | $45 | $58 | $78 | -$149 | $230 | $242 | $436 | | | | | | | | | | | | | | | | | Cash | $1,152 | $1,678 | $1,559 | $699 | $1,007 | $766 | -$331 | Accounts receivable, net | $1,893 | $1,269 | $684 | $1,323 | $779 | $1,604 | $2,265 | Inventories | $3,276 | $3,624 | $4,764 | $3,339 | $3,234 | $3,129 | $3,024 | Current assets | $6,321 | $6,571 | $7,007 | $5,361 | $5,020 | $5,499 | $4,958 | Gross fixed assets | $4,010 | $4,010 | $4,010 | $4,010 | $4,360 | $4,360 | $4,360 | Accumulated depreciation | $3,070 | $3,080 | $3,090 | $3,100 | $3,110 | $3,124 | $3,137 | Net fixed assets | $940 | $930 | $920 | $910 | $1,250 | $1,237 | $1,223 | Prepaid expenses | $24 | $24 | $42 | $42 | $42 | $42 | $42 | Total assets | $7,285 | $7,525 | $7,969 | $6,313 | $6,312 | $6,778 | $6,223 | | | | | | | | | Notes payable, bank | $1,000 | $1,000 | $1,000 | $1,000 | $1,350 | $1,350 | $0 | Accounts payable | $399 | $621 | $948 | $600 | $600 | $600 | $600 | Accruals | $678 | $585 | $552 | $552 | $552 | $552 | $552 | Taxes payable* | $354 | $407 | $479 | $160 | $305 | $529 | $888 | Customer advances | $1,566 | $1,566 | $1,566 | $726 | $0 | $0 | $0 | Current liabilities | $3,997 | $4,179 | $4,545 | $3,038 | $2,807 | $3,031 |

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