Title: Medieval Adventure Company

Essay Details

Subject: Business
Author: Robert K
Date: November 16, 2014
Level: University
Grade: A
Length: 2 / 343
No of views: 0
Essay rating: good 0, average 0, bad 0 (total score: 0)

Essay text:

A line of credit may be better suited for this situation. They can draw the money as needed and only pay interest on the portion drawn upon. 2. Even though they were profitable in a very short period of time, monthly increases in account receivable ($55,000/month) and inventory ($17,500/month) were burning through cash faster than they were able to recover it from customers...

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All this could have been avoided if they created a yearly Profit Plan at the beginning of the year. Part of the plan would have been a cash budget which would show them that the way they had things setup would leave them without cash by April. With the information from the cash budget they could have done a few things...

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