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 unanimous 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 summate shrubs, annuals, perennials, and trees to retail nurseries throughout the eastern region. 2006 is expected to be an superior year for Horniman Horticulture since the inventory of the more netable, instant landscape is make maturity and the expansion of an supererogatory 12 acres of tilled land has been finalized. (Horniman Horticulture: Chapter 9) Maggie Brown, Horniman Horticulture Horticultures bookkeeper, is concerned that future tense hard cash flows volition not sustain the expected growth. The companys ongoing cash level is around $9,000, which is chthonic the companys desired goal of 8 pct of the annual revenue. Maggie besides has concerns about the company leveraging its debt. at that place be a few factors, such as a work up in required salaries for agricultural workers, increased interest place 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 altogether of the companys cash to pay send remove the increased inventory immediately to receive the two percentage discount offered by suppliers. (Horniman Horticulture: Chapter 9) Issues/Problems According to Exhibit 1, cash has significantly declined over the past four years for a summarize of reasons. Both inventory and acc! ounts receivable drive increased substantially. catalogue 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 energize extreme difficulty creating cash from its inventory is an emergency occurred. Maggie is low gear 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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