Running head: REED’S CASE STUDY Case Study Ardmond Pree University of Phoenix Dr. Robert Mayfield FIN 370 Case Study In the Case Study for “Reed’s Clothier,” Jim Reed II has allowed what once was considered deem able business practice to drastically affect his business. Jim’s uninformed decision to increase inventory has snowballed into insurmountable debt. Instead of realizing his company was in a financial bind, Reed decided to solicit his bank which has been the company’s bank since being founded, for an increase in his line of credit. With new management in place, the bank no longer does business like the days of old. Harold Holmes, the new banker in charge of the Reed account requests to see company books and after examining what Reed presented, decided to deny the increase in the Reed credit line.
Homes and buildings were built near springs through the period to take advantage of the natural heat of these geothermal springs. 1892 marked the first time that the energy from hot springs is used on a large scale with the construction of the Hot Lake Hotel near La Grande, Oregon. In 1900 people in Boise, Idaho, developed the world's first district heating system. The water is piped from the hot springs to town buildings. After a few years, they have piped water to over
Greenmailing is the practice of purchasing enough shares in a firm to threaten a takeover and thereby forcing the target firm to buy those shares back at a premium in order to suspend the takeover. We can suppose that Pickens attempted to greenmail Koito as it is mentioned in the case “The high price Mr. Pickens allegedly paid for his stock […] added to the suspicion that he intended to greenmail Koito”. Moreover, Pickens was known as “an aggressive, tenacious, and generally hostile bidder for corporations”. Pickens was the largest shareholder of Koito. According to the US corporate governance custom and convention, Mr. Pickens was entitled to representation on the board.
Accomplishing both of these would require an increase in long-term debt of about $1.8million dollars based on calculating Alliance’s external financing need. The investment of the $16million in capital expenditures should be given priority as the potential cost and loss of sales due to a failure of Alliance’s fixed assets would serve to erode the value of Alliance to its owner National as well as make Alliance a greater credit risk for the institutions who own its outstanding debt. An example of the type of financial harm that could be caused by a malfunction of Alliance’s plant and equipment was demonstrated in 2004 when Alliance experienced an earnings decline of nearly 6.5% despite revenues increasing by over
So he must of decided it was the best decision to dig a well. The well that Hammond dug is on Mechanic St. Today it sits near the Civic Auditorium, and Mechanic St. John Hammond saved Emporia from the water problem they were having. I think John Hammond is the closest thing to a carpenter /or engineer, in the early days Emporia. Gilbert2 The first building built was a one and a half story Boarding House. John Hammond built the Boarding House.
SIM - Napoli Case Analysis – Napoli is facing various challenges and a lot come from cultural differences between the different acting differences. In this analysis I want to focus on the strategic challenges he is facing. The main problem I see that he is trying to force a business plan that worked well in Europe with the Swatch project onto an Indian project. Further, his Indian managers had submitted twice orders for non-standardized products whiles this was against all of the Napoli’s strategy to only sell standardized products. Further, Schindler’s Indian business faced cost pressures due to sharply increased import tariffs that were not calculated for and a rise in transfer prices from the goods imported from European subsidiary.
This section would focus on the possible cons of adopting IFRS in the U.S. faced by the same group of people discussed above. The auditors will have to make changes to the reports from the previous years for the comparative purposes. The public companies would have to bear a heavy monetary cost of transition from the U.S. GAAP standards to IFRS. It may affect the prices of the stocks of these companies, which in turn would be faced by the investors. This can affect the growth of the company.
On the other hand MI backed mainly by shareholders equity and performing assets and thus would be able to issue new debt increasing value for both shareholders and the corporation. Thus the shareholders would gain at the expense of bond holders and the equity value of the company would increase. b) Bondholders Bondholders had a lot to lose as according to Project Chariot almost all the debt would be assigned to HM. Given the problems in real estate and hotel markets there was a concern of HM’s ability to meet its debt payment and there was a high probability of default. This meant that the risk was issued at investment grade but now was not backed by valuable assets of the companies which were to be spun off to MI which was to be backed by equity.
The entries were booked as “capital expenditures” on the balance sheet instead of an expense. According to "What Went Wrong at Worldcom" (2002), “Such expenses must be immediately recognized in the period incurred, unlike expenditures which can legitimately be capitalized as assets and depreciated over their useful life.”(para. 7) The transfer of funds from one account to another led to over $3 billion in cost, this accounting was not justified by GAAP. The reason for this was to hide the earnings that were plummeting and to keep their stock at a high so that they may attract more investors. The company inflated the assets and made the entries seem as though they had income.
Such as tax consideration, diversification, control, purchase of assets below replacement cost and synergy and so on. Base on the situation described upon, CompuTech needs to merger a company which can enrich their production line, which is the financial software, and CompuTech also needs that company have enough market following in the financial software market. So the merger decision is made based on the consideration of many reasons. The CompuTech want to Growth, want to expend more market, more users. The Synergy would be reasons why CompuTech want to merger CCI, because CompuTech have no experience about develop financial software, but after merger CCI.