Got a tricky question? Receive an answer from students like you! Try us!

1, 2 - Case Study Example

Only on StudentShare
Masters
Author : zharris
Case Study
Finance & Accounting
Pages 5 (1255 words)

Summary

Case Study 1, Case Study 2 Table of Contents Case 1 3 Objectives to Consider 3 Actions to Take 3 Options 4 Decision 5 Case 2 5 Objectives to Consider 5 Actions to Take 6 Options 6 Decision 7 Works Cited 8 Case 1 Objectives to Consider Sweetco Inc. was a subsidiary of 5A1, but the parent company decided to sell off its subsidiaries as the company was not fitting into their strategic framework…

Extract of sample
1, 2

were never taken care of. Now it has been heard that Sweetco Inc is being sold off by its holding company to its senior management and a leading firm. Apart from this, another fact was also revealed that Sweetco received money from its holding company for its operational functions on the basis of loans. This is the reason why the CFO has asked for an extension in the credit terms to 60 days. The objective is now to analyze the financial credibility of Sweetco at present and make a future projection so that we can decide whether to maintain the business relationship or not. Actions to Take The best option in such a case is to ascertain credit scores of the company Sweetco Inc. Assigning credit scores means defining certain factors for making decisions and allotting weight age on each factor. For example, 30 percent weight age for the payment history of the customer, 30 percent weight age to the amount of money outstanding, 15 percent weight on the length of the credit history, 10 percent weight on the newly generated credits, and 10 percent on the different types of loans being offered to the customer, i.e. Sweetco Inc. For this purpose the marketing contacts would be utilized; the investigation of credit shall be done through reliable sources; the customer of Sweetco Inc. ...
Download paper

Related Essays

Case Study on Operations
Entrepreneurship generally entails the process where individuals with high aptitude undertake to pioneer change thus producing, improving, and increasing wealth. Such individuals are usually discouraged and held back by the uncertainties and risks that are involved with pioneering change. In this case, insurance companies come in handy to bear the risks involved with pioneering change at a reasonable premium and thus influencing entrepreneurial attitude, innovation, and investment. Establishment of businesses with new ideas is risky to businesses, since it involves pioneering investments into…
5 pages (1255 words)
Enron Scandal Case study
Basically those businesses prosper that have implemented systems to enhance the faith of the shareholders via transparency, responsibility and fairness (Raghavan, 2010). Carrying out of ethical business conduct would mean accepting and practicing sound corporate governance. The role of auditors is also vital in bringing good corporate governance (Fan & Wong, 2001). The main objective of the study is to identify the facts that led Enron to financial scandal and brought up to the surface a culture of corruption as well as greed. The role of the auditors and the corporate governance in such…
5 pages (1255 words)
Beach Rental Case study
That will ensure that they have good accommodation and a good environment in which the students can be working from. The efficiency of the company can be done by measuring of the efficiency of workers in the company. The measurement of performance by employees is a critical thing for ensuring that there is success in the running of a business organization. The measurement of performance is done so as to ensure that the employees of a company provide value for the money that they earn. Performance may be measured by the number of hours worked or by the quality of work done or the output that…
5 pages (1255 words)
Case study Gary hart
12,000 incurred the first week Analysis of revenues Revenue per day: 75%*60*24=?1,080 Payment in cash per day: 50%*1,080=?540 Revenue per month: 1,080*24=?25,920 Revenue per quarter: 25,920*3=?77,760 50% of daily sales are credit sales payable four weeks later Assumptions 1. Gary purchases ingredients once every month. 2. Waiting staff salaries and social security costs are payable every month. a. Gary’s Restaurant Trading cash budget For the year ended December 31, XXXX Quarter total 1 2 3 4 ? ? ? ? ? Cash b/f 48,484 126,364 213,248 Add receipts Cash sales 38,880 38,880 38,880 38,880…
9 pages (2259 words)
Case study
o 600,000 sterling pounds, adding this amount to the working capital of 180,000 pounds amounts to an initial cost of 780,000 pounds. The overheads have been adjusted from the previous 47,000 pounds to 30,000 pounds in a year. Question One b i) Pay back Year Cash flow ? (?000) Cum. CF ? (?000) 0 (600) (600) 1 147,000 (453) 2 157,000 (296) 3 157,000 (139) 4 187,000 48 5 187,000 23 3 years and (139/ 187) x 12 3 years and 8.9 months ii) Net Present Value Year Cash flow ? DF 12% PV ? 0 -600,000 1.000 -600,000 1 147,000 0.893 131,271 2 157,000 0.797 125,129 3 157,000 0.712 111,784 4 187,000 0.636…
8 pages (2008 words)
Perry Rose Case Study
Additionally, a Memo will be prepared to the board advising them on whether to accept or reject the project. The study will put forth factors that a bank should consider prior advancing loans. Additionally, calculations will be utilized in order to determine whether the bank should grant the required increase in the overdraft for Gainsborough Fashions Ltd. In above connection, the Year0 Year1 Year2 Year3 Year4 year5 Year6 ?000 ?000 ?000 ?000 ?000 ?000 ?000 Equipments (500) - - - - - (100) Sales Revenue 0 450 470 470 470 470 470 (-)Less Cost Materials 0 0 126 132 132 132 132 Labour 0 0 90 94 94…
8 pages (2008 words)
Corporate Collapse Case Study Part 2
In USA this procedure is a part of fraud accounting but in the UK it is used to provide flexibility in the existing accounting and regulatory system of the company. The sole purpose of accounting is to provide a true and fair view to the users of the financial information (Larson, 2008). Creative accounting does not necessarily mean the violation of GAAP rules or breaching of any terms and condition of the company. The accountants generally use this concept to insert flexibility in the accounting system and deliver a true and fair view to the users of the financial report and information…
8 pages (2008 words)