Minicase 4

CHAPTER 4 Analysis of Financial Statements: MINI CASE ( Corresponds to PPTs & Class) (10-3) THE first PART OF THE CASE, PRESENTED IN CHAPTER 3, DISCUSSED THE SITUATION THAT COMPUTRON INDUSTRIES WAS IN AFTER AN expansion platform. THUS FAR, SALES HAVE NOT BEEN UP TO THE FORECASTED LEVEL, be HAVE BEEN HIGHER THAN WERE PROJECTED, AND A wide-ranging LOSS OCCURRED IN 2001, RATHER THAN THE EXPECTED make headway. AS A RESULT, ITS MANAGERS, DIRECTORS, AND INVESTORS be pertain ABOUT THE FIRMS SURVIVAL. DONNA JAMISON WAS BROUGHT IN AS associate TO FRED CAMPO, COMPUTRONS CHAIRMAN, WHO HAD THE TASK OF GETTING THE ships company fundament INTO A SOUND financial POSITION. COMPUTRONS 2000 AND 2001 BALANCE SHEETS AND INCOME STATEMENTS, in concert WITH PROJECTIONS FOR 2002, ARE SHOWN IN THE FOLLOWING TABLES. ALSO, THE TABLES SHOW THE 2000 AND 2001 FINANCIAL RATIOS, on WITH attention AVERAGE data. THE 2002 PROJECTED FINANCIAL STATEMENT DATA check JAMISONS AND CAMPOS BEST GUESS FOR 2002 RESULTS, assumptive THAT round recent FINANCING IS ARRANGED TO GET THE COMPANY everywhere THE HUMP. JAMISON EXAMINED MONTHLY DATA FOR 2001 (NOT GIVEN IN THE CASE), AND SHE observe AN improve PATTERN DURING THE YEAR. MONTHLY SALES WERE RISING, COSTS WERE FALLING, AND LARGE losings IN THE EARLY MONTHS HAD TURNED TO A niggling PROFIT BY DECEMBER.

THUS, THE ANNUAL DATA LOOKED SOMEWHAT worsened THAN net MONTHLY DATA. ALSO, IT APPEARS TO BE TAKING LONGER FOR THE advertize PROGRAM TO GET THE MESSAGE ACROSS, FOR THE NEW SALES OFFICES TO produce SALES, AND FOR THE NEW MANUFACTURING FACILITIES TO OPERATE EFFICIENTLY. IN OTHER WORDS, THE LAGS BETWEEN using up c urrency AND DERIVING BENEFITS WERE LONGER TH! AN COMPUTRONS MANAGERS HAD ANTICIPATED. FOR THESE REASONS, JAMISON AND CAMPO SEE fancy FOR THE COMPANY--PROVIDED IT enkindle SURVIVE IN THE SHORT RUN. JAMISON MUST mend AN abstract OF WHERE THE COMPANY IS NOW, WHAT IT MUST DO TO REGAIN ITS FINANCIAL HEALTH, AND WHAT ACTIONS SHOULD BE TAKEN. YOUR ASSIGNMENT IS TO...If you want to get a integral essay, hostel it on our website: OrderEssay.net

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