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Essay Details:
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Essay text:
SureCut Shears now faced a credit problem because they no longer expected to be able to pay off the seasonal loan.
INTERPRETATION OF EXHIBITS
Due in part to a slackening of sales, inventory at the end of March 1996, the amount of additional money tied up in inventory over the 9-month period of interest is almost double the forecast. But by October 1995, it was apparent that sales were not keeping up with what was forecasted. Over the 9-month period, the Profit Margin is only 10%, far below the acceptable range of 15 – 30%. So one wonders why the planned orders with the manufacturer were not reduced to compensate...
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Common topics in this essay:
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