Gone Rural Case Write Up Essay

Be Our Guest’s balance sheet shows good signs of liquidity. Current Ratios for the past four years have remained above 1 proving that the company can handle its current liabilities. The current ratios are not extremely high (19941.27, 1995- 2.17, 1996- 1.15 and 1997- 1.16), but they can cover the current liabilities. It is important to note that the company is operating on a thin line because the current assets are barely covering the current liabilities. This is particularly unpleasant because we are dealing with a company operating in a seasonal business. It is a concern that the current ratio slightly eroded after 1995, and this is primarily due to Be Our Guest converting the bank line into long term debt in

Question Two: What are the problems faced by Sally and what could the organization have done to address her problems?

31.  Current liabilities are amounts that must be paid within a short period of time, usually less than a year.  TRUE

Please break down the current liabilities that are listed on the May 2015 balance sheet. I would like to know more about the acquired property taxes, distribution payable, notes payable, etc.

It seems that there is never a time in the world where we can be assured that prosperity for a large percentage of the population is a safe bet for the foreseeable future. There always seems to be another financial crisis lurking around the corner, even when things seem the most settled. That reality can be a scary one for people to confront, since they have their own financial stakes to consider. If you are the head of a household or a family, this prospect can be even more daunting, since you also have to worry about the fortunes of those who count on you as well as your own. The stress from wondering what’s coming next from the economy at large can be unbearable at times.

The Company had $1.55 of current assets to repay each $1 in liabilities in 2014, dropping to $0.94 per $1 in 2015 respectively. The decrease in current ratio occurred due to the decrease in current assets and increase in current liabilities from 2014 to 2015. It is important to recognize that in 2015, SCC did not have enough current assets to pay for its current liabilities. The note of financial statements attributed this to the increase in trades payable and accrued expenses from the expansion plan of SCC, leading to

Currently the Brown’s pay back suppliers in the first 10 days, averaging 9.9 days, to receive a 2% discount. This is nearly three times as fast as the industry average of 26.9 days. This doesn’t work well with their current credit terms offered to customers, as their receivable days are averaging at 51 days, which is double the industry average.

how things work, and that what goes around comes around. This ties directly with the down-to- earth perspective that rural Kansas offers.

Obligations incurred from the year 2003 up to the present will be paid, on installment basis;

The third scenario involves the same $100 million borrowing capacity:, only each draw does not have its own maturity date specified.  Instead, whatever outstanding balance remaining is due by the end of the three-year credit line term, or December 31, 2012.  The first draw is made on June 30, 2010, in the amount of $70 million.  Another draw for $15 million is made on September 30 of the same year, followed by another draw for $15 million on November 30.  The only repayment made by Buck is that made on December 15, 2010, in the amount of $50 million.

9. Debt service coverage = (Net Income + Interest + Depreciation) in Statement of Operations/ Interest + Principal Payments ($10 million assumed for this assignment)

The company currently faces serious financial challenges. It was struggling with declining sales and increasing costs. Since 2004, revenues had fallen by more than 40% while costs especially for employees health insurance, maintenance, and utilities climbed. Credits and loans had been borrowed to

The company’s day-to-day operations did not change significantly over the last few years. Average collection period, inventory turnover, accounts payable, accounts receivable as well as cash conversion cycle all went up and down over the last four years but mainly stayed in the same range. So, there is no any significant change in operations. Mr. Cartwright has a very sound control over operations of the firm. Therefore, I believe, the company needs few more years to recover from the debts

As a significant proportion of household consumption is based on borrowing and if the cash rate falls, the amount households can borrow will increase

3. How do you educate a manager to manage an organization as it evolves over time from an entrepreneurial structure to a more sophisticated and complex organizational structure?