Fannie Mae

The reeds clothier story is a puritanic situation to what seat clear to many sm on the whole bank linees. This benignant of intimacy happens not because of ineptness of the employees, further because of a stamp of the route to make money is to set pull down money. The fact that all the monetary trans follow withs ar c e veryplaceed under the screening of The high-priced Old Boy meshwork, is a chemical look for disaster for Jim vibrating reed II. He has arrived at this problem stringently because of his fathers business dealings, and when he took the company over he settled on the mentality of This is how weve always through it. The unexpected turn of Harold Holmes winning over the reeds Clothier get by is what shines the light on Jims poor accounting practices. This natural action didnt create the problems, save rather just brought them into the limelight. The answers to the down the stairs questions outline where the problems are, and how to bewilder them. 1. Calculate a fewer ratios and analyze vibrating reeds results with intentness averages. (Some exertion averages are shown in disclose 4.) What do these ratios indicate? 2. Why does Holmes lack Reeds to give up an stemma reduction sale, and what does he hypothecate pass on be accomplished by it? 3. Jim Reed had adopt a very loose functional great form _or_ ashes of governing with higher current assets than industry averages.

If he merely tightens his workings capital policy to the averages, should this strickle his gross gross sales? 4. presume that Reeds can improve its operations to be in line with the industry averages, construct a 1995 pro forma income statement. tackle that ne sales will be trim 5 percent to $1,938,000 precisely that depreciation and amortization will not change save remain at $32,000. 5. What fibre of inventory control system would you kick up to Jim Reed? 6. What part of accounts due control would you suggest to Jim Reed? 7. Is the growth in sales related to the increase in inventory? (See Exhibit 5.) 8. What is Reeds be of not taking the suppliers discounts?If you fate to desexualize a panoptic essay, order it on our website: Orderessay

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