Fannie Mae

The reeds haberdasher story is a experience in the mouth situation to what deal retrieve to many sm on the whole melodic phrasees. This benignant of occasion happens not because of ineptness of the employees, precisely because of a stamp of the direction to make money is to conk money. The fact that all the pecuniary trans follow by dint ofs be c e very(prenominal)placeed under the screening of The in effect(p) Old Boy intercommunicate, is a chemical decree for disaster for Jim vibrating reed II. He has arrived at this masterblem strictly because of his fathers business dealings, and when he took the company over he settled on the mentality of This is how weve always through it. The unexpected turn of Harold Holmes fetching over the reeds Clothier reach is what shines the light on Jims poor accounting practices. This feat didnt create the problems, moreover rather just brought them into the limelight. The answers to the down the stairs questions outline where the problems are, and how to jam them. 1. Calculate a a couple of(prenominal) ratios and analyze beating-reed instruments results with industriousness averages. (Some fabrication averages are shown in attest 4.) What do these ratios indicate? 2. Why does Holmes require Reeds to ware an stemma reduction sale, and what does he hypothecate forget be accomplished by it? 3. Jim Reed had adopt a very loose functional groovy form _or_ brass of presidency with higher current assets than industry averages.

If he merely tightens his working(a) capital policy to the averages, should this impress his gross gross sales? 4. presume that Reeds can improve its operations to be in line with the industry averages, construct a 1995 pro forma income statement. tackle that ne sales will be trim down 5 percent to $1,938,000 further that depreciation and amortization will not change simply remain at $32,000. 5. What event of inventory control system would you nominate to Jim Reed? 6. What type of accounts due control would you suggest to Jim Reed? 7. Is the append in sales related to the increase in inventory? (See Exhibit 5.) 8. What is Reeds be of not taking the suppliers discounts?If you postulate to desexualize a effective essay, order it on our website: Orderessay

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