Case 2 Essay

1875 WordsSep 24, 20128 Pages
CASE 9: Horniman Horticulture 1. Assess the strengths and weaknesses of the company Horniman Horticulture. - Horniman Horticulture has a variety of strengths and weaknesses, among them are a mix of quantitative numbers to support the performance as well as qualitative factors to support the performance. We should address the management to start with and their business philosophies. One of the co-owners Bob Brown has a very strong work ethic, which he has achieved through his fathers personal career path to become a foreman of a lumber mill in Southwest Virginia. Bob followed his father’s footsteps and was made supervisor at the lumber mill after his educational side was achieved, among working as a supervisor he was highly…show more content…
From these cash outflows, it is possible to say that Horniman business had been improved from 2002 to 2005. 3. What do you expect the financial position of the business to be in 2006? | | | | | | HORNIMAN HORTICULTURE | | | | | | | | | | | | Projected Horniman Horticulture Financial Summary (in thousands of dollars) | | | | | | | | | 2004 | 2005 | 2006 | Profit and loss statement | | | | Revenue | 908.2 | 1048.8 | 1311.0 | Cost of goods sold | 437.7 | 503.4 | 629.3 | Gross profit | 470.5 | 545.4 | 681.8 | SG&A expense | 356.0 | 404.5 | 505.6 | Depreciation | 36.3 | 40.9 | 46.0 | Operating profit | 78.2 | 100.0 | 130.1 | Taxes | 26.2 | 39.2 | 51.0 | Net profit | 52.0 | 60.8 | 79.1 | | | | | Balance sheet | | | | Cash | 66.8 | 9.4 | -134.5 | Accounts receivable | 119.5 | 146.4 | 182.8 | Inventory | 523.4 | 656.9 | 821.1 | Other current assets | 22.6 | 20.9 | 26.1 | Current assets | 732.3 | 833.6 | 895.6 | Net fixed assets | 384.3 | 347.9 | 376.9 | Total assets | 1116.6 | 1181.5 | 1272.5 | | | | | Accounts payable | 4.5 | 5.0 | 6.3 | Wages payable | 22.1 | 24.4 | 30.5 | Other payables | 16.6 | 17.9 | 22.4 | Current liabilities | 43.2 | 47.3 | 59.2 | Net worth | 1073.4 | 1134.2 | 1213.3 | | | | | Capital expenditure | 88.1 | 4.5

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