Case: Horinman Horticulture
Listed below are the questions you will need to answer:
1. Do you agree with Maggie Brown's accounts-payable policy?
2. What do you expect the financial position of the business to be in 2006? Extend the financial statements through 2006, assuming that Bob Brown grows revenue by 30%.
Note: To make the balance sheet balance, define cash as equal to (Curr. Lib. + Net worth) - (Accounts receivable + inventory + OCA + Net fixed assets).
1. What is going right with this business? What concerns you?
2. Where is the cash going?
3. Will strong business performance in 2007 improve the cash position?
4. What are the alternatives or solving the business's cash problem?
5. What is the problem?