Bodie Industrial Supply Essay

The Industrial Revolution began in England during the 18th Century. This revolution started out in England, and spread throughout Europe and North America. Many technologic and agricultural advances were made during this time. Factories became the main source of production, rather than in home workers. This resulted in many people living in rural areas to move into industrialized cities, which was called rural to urban migration. The Industrial Revolution started in England due to its supply of natural resources, advanced technology and inventions, and political freedom.

The company’s increase in inventory (illustrated on the statement of cash flows) rose after 1970 and culminated by a drastic increase in 1973. This increase in inventory (especially in 1973) appears to be heavily financed by short-term and long-term borrowing rather than the typical accounts payable. This is a bit unusual and in 1973 (when they acquired the greatest amount of debt equity, their accounts payable decreased. Their sales were not sufficient to offset the large outflows of inventory related costs. Furthermore, Grant’s decentralization was also a cause of their financial woes because rather than corporately controlling credit extension and credit terms, they allowed each store manager to set their own policies (and manipulate them as they desired). This disastrous policy imploded in 1975 when the company had to make a $155.7 million provision for bad debt expense. So not only did the company have substantial debt and bad debt to equity ratios, they were forced to write off about 8.8% of their total sales from 1975.

Haefren Baum is primarily using financing activities to maintain operations of the business. They are basically staying alive by debt, and will need to re-evaluate its processes to stay in business.

Financial analysis: Haefren Baum is funding itself from bank loans, mortgages, and their supplier’s flexible credit. The major change in consumer demand, from the economic bust, in 1993, lead to lower sales and extended account payable days. The cash flow statements are unhealthy as they negative operating cash flows generated from a negative net income and high account payables. The company is far from liquid with 1.26 quick ratio in 1995 and high account payable days. The company has profitability issues, which is seen in their decrease in operating profit and negative return on equity. As stated earlier this is due to their decline in sales, tough economic conditions, and increased competition. They are highly leveraged company, which is risky. Their debt to equity ratio jumped from 5.84 in 1993 to 8.22 in 1995, which means it is hard for them to sustain that debt with their low equity. For

The Industrial Revolution was a major turning point in history that took place between 1760 and the mid 1800’s. During this time frame, a variety of different machines were invented and put in factories to make workers and everyday people’s lives easier. These machines had to be run by people such as women and even children because the men were mostly in coal mines. Some of the many negative consequences about these new jobs and new machines being invented were; child labor, physical abuse on the job, and unsafe working conditions. While some might argue that Industrialization had primarily positive consequences for society because more jobs became available, it was actually a negative thing.

ACC/291 March 25,2012   Liquidity Ratios Current Ratio: Current Assets/Current Liabilities 2005 $14,555,092/ $6,974,752= 2.09:1 2004 $14,643,456/ $6,029,696=2.43:1 Acid Test Ratio: Cash+ Short-Term Investments + Receivables (Net)/ Current Liabilities 2005 $305,563 + $283,583 +$6,133,663/ $6,974,752= .96:1 2004 $357,216 + $133,504 + $5,775,104/ $6,029,696=1.04:1 Receivables Turnover: Net Credit Sales/ Average Net Receivables 2005 $50,823,685/ ($6,133,663 + 5,775,104/2) $50,823,685/ $5,954,384= 8.54 times 2004 $46,044,288/($5,775,104+6,569,344/2) $46,044,288/ $6,172,224=7,46 times Inventory Turnover: Cost of Goods Sold/ Average Inventory 2005 $42,037,624/ ($7,850,970+$7,854,112/2) $42,037,624/$7,852,541=5.35 times

Two-year decrease of liquidity measures including current ratio and quick ratio reveals the problems concerning company’s short-term solvency and liquidity. Butler Lumber Company’s current ratio decreased to 145.05% in 1990 from the level of 180.00% in 1988. The same decrease happened to quick ratio (decreased from 88.08% in 1988 to 66.92% in 1990). As the short-term lender, Northrop National Bank should have noticed that Butler Lumber Company’s ability to pay its bills over the short run without undue press needs to be carefully examined. The decrease of current ratio also implies the decreasing level of company’s net working capital, which is another sign of lower level of liquidity.

The Industrial Revolution began in England during the late 1700s. It came with a wide range of both positive and negative effects for the economy and the people. Looking back from today, the Industrial Revolution was definitely a positive thing, as people now have a high standard of living with lots of conveniences. One must also acknowledge the people living during the Industrial Revolution and how they viewed the Industrial Revolution as a bad thing that came with many negative effects. While some might argue that Industrialization had primarily negative consequences for society because of the terrible living conditions and hazardous working conditions, it was actually a positive thing for society. Industrialization’s positive effects

The Industrial Revolution was marked as the biggest shift from an agrarian, handcrafted economy, to an economy dominated by machines. The Industrial Revolution began during the 1700s in Great Britain when King George III was in power. The Industrial Revolution had many positive effects such as the invention of the railroad. It also had many negative effects like how many got sick and died because of the working conditions. Out of all the positive and the negative effects the lasting effects were major. One of the most major lasting effects was the environmental laws that were put in place to stop all of the pollution and trash in the sewage.

The largest floor covering product is carpet and rugs followed by ceramic tile, vinyl, hardwood, stone, laminate and rubber floorings.

After carefully reviewing the income statement, balances sheet and cash flow it seems that the company has a negative cash flow for 1998, so even before thinking about obtaining internal and external resources for long term investment, the company must assure resources for their own working capital.

First of which, is the current ratio. It has been rapidly declining since 2000. To me this indicates that there is a liquidity issue. Each year their trade debt increase exceeds the increase of net income for the company. As a result, the working capital has taken a nosedive from $58,650 in 2002 to only $5,466 in 2003.

If BBBY were to use $400 million in excess cash and $636.3 million in borrowed funds to repurchase it's shares they would increase their basic earnings per share from 1.35 to 1.41 and their diluted earnings per share from 1.31 to 1.37. If BBBY were to use $400 million in excess cash, and borrow $1.27 billion to repurchase their shares, the increase of the basic earnings per share would only be 0.3 while the difference from zero debt to

Industrial Equipment INC. sold and serviced a variety of industrial equipment and related products to hospitals, nursing homes, hotels, motels and various other organizations in the four Atlantic Canadian provinces of New Brunswick, Nova Scotia, PEI and Newfoundland/Labrador. In addition to distributing a broad line of specialized equipment IE provided design, specification and planning assistance to architects,

* This is classed as a debt on your balance sheet, which could make it