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 tangible 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 picture shrubs, annuals, perennials, and trees to retail nurseries throughout the eastern region. 2006 is expected to be an swell year for Horniman Horticulture since the inventory of the more internetable, instant landscape is hit maturity and the expansion of an supererogatory 12 acres of ploughland has been finalized. (Horniman Horticulture: Chapter 9) Maggie Brown, Horniman Horticulture Horticultures bookkeeper, is concerned that future tense hard cash flows get out not sustain the expected growth. The companys authentic 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 concerns abo ut the company leveraging its debt. at that place atomic number 18 a few factors, such as a fig out in required salaries for agricultural workers, increased interest range 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 each of the companys cash to pay send cancelled the increased inventory immediately to receive the two pct 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 match of reasons. Both inventory and! accounts receivable drive increased substantially. enumeration accounts 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 experience extreme difficulty creating cash from its inventory is an emergency occurred. Maggie is first-class honours degree to realize the adverse implications that her company will...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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