Plumb Parts Supply

Monday, March 1, 2010 MBA 614 Plumb Parts sum Key trouble The key line of work in this case is whether or not the bank should lend Plumb Part Supply (PPS) - and its relatively parvenu possessor 160,000$ to purchase a new vehicle and new machinery. The company would require an additional $25,000 in funding to meet its short-run cash requirements in the spend season. The business would have to produce adequate money to dream up the $26,200 principal and interest live each year. The business moldiness also generate enough money to allow for its proprietor to draw a net income of at least $35,000. occurrence Analysis Strengths Proven family business with an forward-looking and entrepreneurial spring owner (James Taggart) and a well-schooled, well belowgo current owner (Sean Taggart). national exposure through occupy marketing activities (semi-annual trade shows & 52-page catalogue). demo ability t o grow under unfavorable external conditions (sales harvesting in the early 1990s). tumescent sales growth and change magnitude profitability in 2003. PPS has a track record of beingness node-focused and as a conduce possesses a loyal customer base. PPS has solid financial ratios above the application average in many cases.

Weaknesses The construction patience in Canada is seasonal; this poses a potential cash coquet in the winter months. Although PPSs liquidity is good, the company does not carry any cash. whole current assets are secure up in accounts overd ue and inventory. Due to the high receivable! period (71.6 days in 2003), they can potentially be exposed if for some indicate they run into difficulty accumulation their accounts receivables. Opportunities In 2004, the economic reckon is positive for the construction industry because of low interest order and high consumer confidence. Construction crossways Canada is expected to increase over the next few years. Threats In the year...If you want to get a full essay, order it on our website: BestEssayCheap.com

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