Horniman Horticulture Case Study

Horniman Horticulture Situation Analysis Horniman Horticulture is a whole-sale nursery owned by sour grass and Maggie Brown. The smart set has experienced strong growth of more than 40 pct since the Browns purchased the business in 2002. The nursery utilizes 52 greenhouses and 40 acres of field to deliver shrubs, annuals, perennials, and trees to retail nurseries throughout the eastern region. 2006 is expected to be an big(p) year for Horniman Horticulture since the inventory of the more goodable, instant landscape is attain maturity and the expansion of an supererogatory 12 acres of farming atomic number 18a has been finalized. (Horniman Horticulture: Chapter 9) Maggie Brown, Horniman Horticulture Horticultures bookkeeper, is concerned that future tense silver flows result not sustain the expected growth. The companys reliable cash level is around $9,000, which is chthonic the companys desired goal of 8 pct of the annual revenue. Maggie in like manner has co ncerns about the company leveraging its debt. at that place are a few factors, such as a annul in required salaries for agricultural workers, increased interest pass judgment and adverse weather, which could lead the nursery to not generating bountiful profit to pay back the loans and interest incurred.

Due to her concerns, Maggie has employ all(a) of the companys cash to pay send glowering the increased inventory immediately to receive the two per centum discount offered by suppliers. (Horniman Horticulture: Chapter 9) Issues/Problems According to Exhibit 1, cash has importantly declined over the past four years for a tot of reasons. Both inventory and accounts receivable drive increased substantially. roll accoun! ts for nearly half of the total assets value which hinders Horniman Horticulture from having more cash on hand because the inventory is not very liquid. Horniman Horticulture would beat extreme difficulty creating cash from its inventory is an emergency occurred. Maggie is commencement to realize the adverse implications that her company will...If you want to get a full essay, order it on our website: OrderEssay.net

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