Horniman Horticulture Essay

632 Words3 Pages
Horniman Horticulture Case Bob Brown, a resident of Virginia owns a business of horticulture along with his wife Maggie. Times have been complicated as the business was acquired from Maggie’s family around the year of 2002 and adjustments had to be made in order to be able to run the business successfully. Many businesses do not see profits right away after acquisition; however the Brown family was very please to see that during the first three years they saw profits. The nursery’s operations occupied 52 greenhouses and 40 acres of fruitful fields. It employed 12 full-time workers and 15 seasonal employees. Looking at the financial numbers that the Brown family has been basing their information on does not really represent reality; there is a possibility that they could be numbers representing misleading information. Looking at Horniman Horticulture’s financial statements one can easily notice statistical fluctuations between the year ranges of 2002 to 2005 in the profit and loss statement shown on the attached exhibit 1. We can also notice that during the period of 2002 to 2005 an increase in revenue by 33% took place, which directly affects net profits increasing by almost 90%. These numbers could show a very different story if not looked at carefully, as revenue, sales and goods increased; also administrative expenses went up (which could be considered natural) to a 25% representing an all time high. For Bob and Maggie to look at the profit and loss statements only would be dangerous, as there are a number of different things that must be considered in order to make a thorough analysis of the company. If one focuses on the company’s balance sheet (attached on this document on exhibit 1), one can notice the reality of Horniman Horticulture’s business. This documents shows a red flag, as it displays that cash for the company is decreasing at a very fast

More about Horniman Horticulture Essay

Open Document