Strengths And Weaknesses Of The Company Horniman Horticulture

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FIN3CSF CASE STUDY IN FINANCE Case study two Setting some themes Lecturer: Judy Taylor Yijing Tu 17352944 Pengfei Xu 17353346 Case 9: Horniman Horticulture 1.Analyse the strengths and weaknesses of the company Horniman Horticulture. The Horniman Horticulture has a large number of strengths and weaknesses. Strengths: The management of this company is well done. Bob Brown, the co-owner of this company, has a strong work ethic. The Bob was skilled in company and was extraordinary respected by staffs. Some people described Bob as a “ people person”. His personality is warm and enjoyed by customers and employees. Because of good controlling of Horniman Horticulture. The revenue of company growth constantly from 2002 to 2005.…show more content…
The company need to use cash to pay suppliers early enough to catch any trade discount. Although it took a long time for Bob Brown to sell the inventory, Bob was still optimistic about coming year. The company bought 12-acres which was expected capital expenditure of 75,000 dollar in 2006 in order to extend its property. A large number of cash was detained in inventory. 3.Extend the financial statements (i.e. balance sheet and profit and loss statements) through to 2006, assuming that Bob Brown grows revenue by 20%. Note: to make the balance sheet balance, define cash as equal to (current liabilities + net worth) – (accounts receivable + Inventory + other current assets + net fixed assets). Assess the financial position and need of the business in 2006. Cash = (current liabilities + net worth ) - (accounts receivable + Inventory + other current assets+ net fixed assets) Purchase 2006 = purchase 2005/COGS 2005* COGS 2006 Put depreciation for 2006 = 46 and capital expenditure = 75 Net working capital = current asset- current liability Although the revenue grows up by 20% as the Bob Brown’s idea, the cash level is still very low witch will make in to a negative position. As a result of this,

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