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PART TWO Financial Statements and Long-Term Financial Planning

7. Product Pricing The firm actually priced its product to be about 20 percent less than that of competitors, even though the Grandmother calendar was more detailed. In retrospect, was this a wise choice?

8. Corporate Borrowing If the firm was so successful at selling, why wouldn't a bank or some other lender step in and provide it with the cash it needed to continue?

9. Cash Flow Which is the biggest culprit here: too many orders, too little cash, or too little production capacity?

10. Cash Flow What are some of the actions that a small company like The Grandmother Calendar Company can take if it finds itself in a situation in which growth in sales outstrips production capacity and available financial resources? What other options (besides expansion of capacity) are available to a company when orders exceed capacity?

Income Statement

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Responses

  • amedeo
    What could grandmother calendar company do when growth in sales outstrips production?
    8 years ago

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