Hampton Tool Machine

Hampton Machine diaphysis Company Background Hampton Machine Tool Company was established in 1915 to engage in the implement tool manufacturing worry. The accompanys major nodes included the aircraft manufacturers and gondola manufacturers in the St. Louis area. Since the establishment, Hamptons conservative financial policy helped the firmly to weather the business cyclical fluctuation in gravid good industry, and had no debts on its balance sheet during ten dollar bill years foregoing to 1978. President of Hampton is Mr. Benjamin G. Cowins. Traditionally, the company had unplowed its immediate payment balances at St. Louis National Bank. Request The request is for the replenishment of its term debt of $1 million, which originated in the blockade of December 1978 and would collectable in the end of kinfolk 1979. In additional to the wing of this loan, Hampton also requested some other $350,000 to finance equipment purchases. This loan would be needed by the e nd of October and payable at the end of the year with monthly occupy of 1.5% of principal. hard bullion Analysis Based on the information provided by Mr.

Cowins, an analysis of cash funding and usage that Hampton had from November 1978 to August 1979 is below: interchange in Cash accompanimentUsage maturation in brim debt$1,000,000 line of credit repurchase$3,000 increment in retained cyberspace$883,000 profit in inventories2,163 cliff in cash$961,000 Decrease in accruals9 Increase in customer advances$726,000 TOTAL USES OF funds$5,172 Increase in accounts payable$600,000 Decrease in accounts due$561,000 Increase in taxes payable$329,000 Decrease in wampum hardened assets$92,000 Decrease in prepa! id expenses$20,000 Total Cash Funding$5,172,000 According the analysis above, there is a heavy(p) amount of cash disburses to inventories that drain out the cash on hand that Hampton has. The essential amount of change in cash, customer advances and taxes payable is $2,016,000, which is almost able to cover the increase in...If you indigence to get a full essay, order it on our website: OrderEssay.net

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