Surecut Shears Inc.

____________________________________________________________ SureCut trim, Inc. ___________________________________________________________ Executive Summary The case is about estimating fund requirements for misfortunate terminusination sources of finance. In June 1995, Mr. black cat, treasurer of SureCut Shears arranged a key out of credit of $3.5 one trillion million with the Hudson interior(a) Bank to tag the seasonal worker sales peak. later on going with the analysis, much of these notes were use to fund the outstanding modernication program. Facing the declining sales, SureCut is facing difficulty in paying its piteous term loan obligations to Hudson National Bank. After thorough analysis, the hire for short term fund requirements should non be used in capital expenses since the funds unavoidable to fall the short term fund requirements comes from the sales of stemma which was the intention of the special cash to stock up much inventory. Prope r utilization of funds is a must for SureCut to be able to manage its payables to its bank declination partners. Case Context SureCut Shears, Inc. manufactures a plump out line of household scissors and industrial shears. Their products are distributed with wholesalers to specialty, hardware and section stores around the country. In June 1995, Mr.

Fisher, treasurer of SureCut Shears arranged a line of credit of $3.5 million with the Hudson National Bank to cover requirements for the fall anticipating that the loan would be to the full paid by by December of the same year. In September 2005, Mr. Fisher called Mr. Stewart of Hudson National Bank to inform him that the! caller-out would need an additional $350,000 to cover peak seasonal needs. In January 1996, there was a decrease in sales demand. In April 1996, Mr. Fisher called Mr. Stewart to severalise him that SureCut Shears would not probably be able repay its outstanding short-term loan of $1.14 million in June. line Definition What factors contributed to the reasons behind SureCuts inability to...If you loss to put up a full essay, order it on our website: BestEssayCheap.com

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