Stan was experiencing a number of cash flow problems

Assignment Help Operation Management

Reference no: EM131777565

Stan was at his banker’s trying to get a short term loan. “I need about $10,000 for three months, just until I get things straightened out. This is my situation: I got this nice order last February from Baker Company. Their bill was due last month, but so far I haven’t seen anything. Now I have another big order, this time from Gisher Construction and I need to order raw materials, but I can’t since Baker hasn’t paid. Even when they do pay, it’s only about 75% of what I’ll need to order to do the Gisher contract. And then, we’re headed into our slow months; no one much does anything through the winter. And with the hurricane down in Florida, people are thinking twice before placing their orders.”

Stan was experiencing a number of cash flow problems that small businesses (and often larger businesses) face. Can you identify five problems?

Reference no: EM131777565

Questions Cloud

Review problem on perfectly competitive market : In a perfectly competitive market, each firm maximizes its profit by choosing only the quantity to produce. Regardless of whether the firm makes an economic.

How might you as a social worker use your understanding : How might you, as a social worker, use your understanding of gender stereotypes and gender roles to help the Logan Family resolve their presenting concerns?

Compute the IRR for each project : Project A requires an initial cash outlay of $100,000 followed by five years of $30,000 cash inflows. Compute the IRR for each project

Correlation coefficient between them is zero : The returns of Stock A and Stock B are independent of one another, i.e., the correlation coefficient between them is zero, Which of the following is correct?

Stan was experiencing a number of cash flow problems : Stan was experiencing a number of cash flow problems that small businesses face.

How many hours will pham work at the bookstore : Pham can work as many or as few hours as she wants at the college bookstore for $9 per hour. But due to her hectic schedule, she has just 17 hours per week.

Compute alpha division return on investment : Compute Alpha Division's return on investment and residual income currently and if it undertakes the project

Preparing for its annual sales promotion : The Marketing Department of JustLee Books is preparing for its annual sales promotion. the free gift description for each book in the JustLee Books' inventory.

Calculate the weighted average cost of capital : Suppose a firm has long term debt of $35 million and short term debt of $20 million with accounts payable of $5 million, and accounts receivable

User Account

All Pages