Kota Fibres, Ltd

CMOT is proposing capital investments of $8,200,000 for 1992. All else remaining equal, including cash taken in from operations and stability in other expenses, this proposed capital expenditure will negatively impact cash flow and decrease cash on hand for 1992 by nearly 75%. It would be possible for CMOT to finance their capital investment program with cash provided from operations, but not with cash provided from 1992’s operations alone. If these investments are made completely from cash, and finance sources are not utilized, there will be a significant increase in CMOT’s assets, which will in turn have a positive effect on shareholder’s equity, since there will not be any further liabilities assumed by the company. There will also be stresses placed on CMOT’s liquidity, which cannot be fully gauged until revenues from the Toiyabe investments come to fruition.

The company is weakened mainly by its lack of technological advancement in every area of production. For example, if the company chose to modify their equipment to produce their “Atherley” model as well, it would be able to lower production costs of this model, in turn increasing the profits of this model further. In addition, the Atherley Furniture Company greatest threat is the decreased market for their “Parkdale” model. The “Parkdale” model has the most time consuming and costly production. With lack of a market for this model, the company stands to continue to lose profits. In conclusion, if the company wishes to continue to operate their chair division profitably as well as efficiently, the above issues need to be addressed and corrected.

Given the net sales in 2011 is still higher than 2010, we can assume the problem is most likely with its operating cost management. On the other hand, HH’s assets turnover rate dropping 0.30 from 2010 suggests an inefficiency of generating more sales with its increased assets in 2011.

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.

A topical listing of the cases is presented with the case and solution following the listing.

Bestwish Limited ('Bestwish') is a for profit company producing wide range of product ranging from quality, gift dressing, greeting cards, wide range of plush merchandise and inventory of more than 50,000 units. The company produces different categories of products ranging between 2 and 15 processes. Typically, Bestwish produces standardized direct sales product designed for customer on contract basis. The company generally faces challenges in controlling costs due to large number of stock units and varying production process and reliance on indirect costs. Bestwish Limited recently closed the account for the 2010 fiscal years, and the company was finalizing the 2011 budget. However, Bestwish is intending to analyze 2010 financial statement to evaluate the company financial performances.

Bestwish Limited ('Bestwish') is a for profit company producing wide range of product ranging from quality, gift dressing, greeting cards, wide range of plush merchandise and inventory of more than 50,000 units. The company produces different categories of products ranging between 2 and 15 processes. Typically, Bestwish produces standardized direct sales product designed for customer on contract basis. The company generally faces challenges in controlling costs due to large number of stock units and varying production process and reliance on indirect costs. Bestwish Limited recently closed the account for the 2010 fiscal years, and the company was finalizing the 2011 budget. However, Bestwish is intending to analyze 2010 financial statement to evaluate the company financial performances.

As of December 2014, the firm had USD 2,489 million in cash and cash equivalents. It is more than certain that available cash will not be sufficient to support firm’s capital expenditure, which last year was equal to USD 1,982 million.

Referring to Vice President of Finance, he want to pursue the current approach because they are in profitable based on contribution margin by 35 percent. The company just needs to monitor their margin in control their cost well.

growing cash position, absence of debt finance, and large equity balance made it difficult for a

Furthermore, the businessman can replace his/her assets through depreciation. After sometime, an asset will be totally exhausted on account of use. A new asset must then be purchased requiring a giant sum of money. If the total amount of earnings is withdrawal from enterprise each year barring considering the loss on account of depreciation, fundamental sum may now not be reachable for shopping for the new asset. In such a case the required cash is to be collected by introducing sparkling capital or through obtaining loan or with the aid of promoting some different assets. This is contrary to sound commerce

Expenses are mounting, an injection of additional capital is required, cash flow is non-existent and sales are desperately needed. Amidst the stress Szaky remains focussed and true to his values and goal, namely to eliminate waste.

Frank $100,000 stock basis, $10,000 bond basis, $7,000 dividend, $3,000 capital gain. Kasha $900,000 stock basis, $90,000 bond basis, $63,000 dividend, $27,000 capital gain.

The problem that the firm Guna Fibres is facing is that they lack sufficient cash flow from operations to meet their day-to-day financial obligations. Guna Fibres has become dependent on a revolving line of credit from the All-India Bank & Trust Company and due to increasing operating expenses and costs of good sold Guna Fibres is no longer able to remain solvent based on their current financial practices.

Kota is experiencing a number of problems. The manage director to prevent over production and over stocking has resulted to a sequence of hiring and layoffs each year.