SPRING VALLEY FOREST PRODUCTS CORPORATION Upon returning from his annual two-week vacation in early July of 2002, the treasurer of the Spring Valley Forest Products Corporation, a Mr. Fred Firr, found the firm's audited balance sheet as of June 30 on his desk. Close scrutiny of the company's financial condition as reported in this document suggested to Mr. Firr that the cash flow picture for the enterprise was deteriorating. In times gone by, the firm had been able to maintain sizeable cash balances in its bank of account, Tippecanoe Trust Company, during the major portion of the fiscal year, and had found only modest seasonal borrowings necessary. Recently, however, a lengthening of credit terms to customers necessitated by intense …show more content…
Shipment had been agreed upon for the latter part of the year. Of the total sales indicated, only 10 percent were expected to be for cash. Collections on the remainder were anticipated generally within 60 days of sale. In particular, recent experience had suggested that roughly one-half of credit sales were collected for during the month following the month of sale and that other one-half during the next subsequent month. Mr. Firr intended to use this pattern as the basis for his calculations. SPRIVORPCO'S woodlot management group had entered into commitments with various timber growers in anticipation of the sales expected. Specifically, they planned to purchase hardwood timber in bulk according to the following schedule: July August September October November December $50,000 50,000 70,000 40,000 30,000 30,000 The cash payments for these deliveries would occur, in all cases, one month later. Labor costs were forecast at the same level as purchases, and were expected to follow an identical month-by-month pattern. Because of the need to pay wages weekly, however, the cash outlays for labor
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.
One assumption that should be clearly analyzed is that the collection period is of 30 days net. Not always customers have the ability and willingness to pay off their debts in 30 days, some may take more time, and some could incur in bad debt.
Analyse how Nineteen Eighty Four and Pleasantville imaginatively portray individuals who challenge the established values of their time.
The business is receiving some discounts by paying within the 10 day discount period. This is a good idea to cut costs and have more cash available, but the business is not receiving payment from their customers in a timely manner. This is shown by the 9 day increase in receivable days since 2002, from 41.9 to 50.9 (exhibit).
The San Joaquin River Valley Project represents a comprehensive long term effort to restore the flow of the San Joaquin River. After reading the article, “River Plan Too Fishy for my Taste Buds” by Bill McEwen I chose and decided to use this article because it has plenty of reasonable facts. Bill McEwen emerged as veteran journalist who has worked in various positions for the Bee since 1980. He grew up in the community and knows how everything works. The article McEwen wrote operated and published in the Fresno Bee in March 6, 2015 in a city surrounded by farms. Fresno offers big anti business and government since the surroundings consist of mostly farms. Low and middle class people promote the highest population, meaning that they read from
About: Sunnyvale is the seventh most populous city in the San Francisco Bay Area and one of the major cities that make up Silicon Valley. It is bordered by portions of San Jose to the north, Moffett Federal Airfield to the northwest, Mountain View to the west, Los Altos to the southwest, Cupertino to the south, and Santa Clara to the east. It lies along the historic El Camino Real and Highway 101. As part of California's high-tech area known as home to several aerospace/defense companies: Lockheed Martin has a major facility in Sunnyvale, and Honeywell, Northrop Grumman Electronic Systems - Marine Systems, Finisar, and Spirent also have offices there. Sunnyvale was also the home to Onizuka Air Force Station, often referred to as "the Blue Cube" due to the color and shape of its windowless main building. The facility, previously known as Sunnyvale Air Force Station, was named for the deceased Space Shuttle Challenger astronaut Ellison Onizuka. It served as an artificial satellite control facility of the United States armed forces until August 2010 and has since been decommissioned and demolished. Sunnyvale is one of the few U.S.
Water, glittering, as the sun throws sparks across the creased, sapphire expanse. Flashes of the lullaby of rising and falling waves through the trees. Golden sands shimmering from across the lake. Our soreness melted as we drove into Windhaven, the group of cabins where our family stays during the weeklong annual family reunion. We got out of the car and breathed in the fresh, lake air laced with nonchalance and the feeling and freedom of summer.
Mystic River is a film that was taken from an adaptation of a book written by Dennis Lehane. It is directed by Clint Eastwood who worked with Brian Helgeland who was the writer alongside him for this film. Eastwood’s career as a director began in 1971 with the movie Play Misty for Me. This was filmed in the early 70’s after Eastwood was a well-established actor. He has gone on to direct dozens of movies with several different plots all ranging with actors and story lines. An example of the movies he has directed with a wide range of characters are Million Dollar Baby (2004) in this movie Clint Eastwood directed and starred in this alongside Morgan Freeman and Hilary Swank. This film shows him as someone who trains boxers. He normally trained
Mystic River The Mystic River movie was directed by Clint Eastwood and released in 2003. The film was shot in Boston as the director felt that it would best capture the essence of the culture in the environment when planning the movie. The film was a true American classic and the director included this notion in his planning. Based on a Dennis Lehane’s novel by the same name, the film showed the rapid change in diversity in the urban culture. Clint Westwood picked Boston because he wanted to bring out the kind of living and realities people of the time had.
The field of study took place in Cherry Creek, near the Science building, which is located on the campus of the University of Colorado-Denver. The study site is located in an urban environment; the weather that day was sunny with some clouds and a light breeze. Rocks and grass surrounded the site of study; we chose a side of the creek to work on the experiment. Also, many bicyclist and joggers passed us by while we were there.
Further talk of the Normal Course Issuer Bid is given in the "Money related Requirements and Liquidity" area of this report. On January 2, 2015, Canfor finished the principal period of the buy of Beadles Lumber Company and Balfour Lumber Company Inc. ("Beadles and Balfour") situated in Georgia, speaking to an introductory 55% possession interest. The second period of the securing whereby Canfor will possess 100% of Beadles and Balfour is planned to close toward the start of 2017. In April 2015, Canfor will likewise get 100% of Southern Lumber Company Inc. ("Southern Lumber") situated in Mississippi. Additionally consequent to year end, on January 30, 2015, Canfor finished the offer of the Taylor Pulp Mill to CPPI (Further exchange of the offer of the Taylor Pulp Mill might be found in Note 32 of the Annual Financial Statements). In the earlier year, the Company finished the offer of its half partake in Canfor-LP OSB Limited Partnership (renamed Louisiana LP OSB Limited Partnership) ("Peace Valley OSB"), which claims the Peace Valley OSB Mill, to Louisiana Pacific Corporation
On September 14, 1979, Mr. Jerry Eckwood, vice president of the St. Louis National Bank was considering a loan request from a customer located in a nearby city. The company, Hampton Machine Too] Company, had requested renewal of an existing $1 million loan originally due to be repaid on September 30. In addition to the renewal of the existin- loan, Hampton was asking for an additional loan of $350,000 for planned equipment purchases in October. Under the terms of the company's request, both loans, totaling $1.35 million, would be repayable at the end of 1979.
Of Juan’s sales, 30 percent are for cash and the remaining 70 percent are on credit. Of credit sales, 40 percent are paid in the month after sale and 60 percent are paid in the second month after the sale.
n early July 1986, Alden (Denny) Hanson, president and chief executive officer of Hanson Ski Products, was preparing for a meeting with his executive commit¬tee on the company's current and longer-term financing needs. For one thing, Mr. Hanson wanted to review the plans for fiscal year (FY) 1987.1 Although the com-pany's bankers had provided a $4-2 million line of credit to meet the year's seasonal cash needs, Denny wanted to recheck his figures to be sure that this credit would be sufficient, particularly since Hanson Ski Products was scheduled to repay stock¬holder loans of $841,000 in November.
Cartwright lumber has had to borrow substantial amounts of money due to the fact that the firm is a growing company with sales rising quickly. In order for the company to sustain this growth rate, they will have to get additional external funding. Growth in sales nearly doubled from 2001 to 2003, with a percentage growth of 18% and 34% in 2002 & 2003 respectively. While sales are growing steadily, the company’s cash is steadily decreasing year to year by 20% and 17% in 2002 and 2003. Taken together with the fact that accounts receivable has grown at a higher rate than sales, 30% & 42%, this firm can not support the growing sales