'John Case\r'

' tin M. fictional character connection I. Statement of the Problem The buns M. moorage Company was established in 1920 by Uriah Case and was the widest manufacturer of business calendars in the unite States. The chic set was then handed off to butt M. Case, and continued to prosper. conjuring trick M. Case controlled a large measurement of the market office in this exertion along with an increasing number for sales. Then, prat M. Case decided it was time to retire and sell the company. Anthony W. fundamentson, an employer of potty M. Case Company, was interested in this purchase.After coming up with $500,000 within the management group, Johnson still faced a dilemma of raising $10 one million million million without crowing up control to outside investors. With this, Johnson needed to espouse up with a strategic financial course of study in order to successfully obtain such(prenominal) a company. II. Statement of Facts and Assumptions With a large amount of the m arket share in favor of John M. Case Company, the business risk was relatively low-pitched for this industry. John M. Case owned 60-65% of the market share causing the risk to be substantially frown than other industries. Manufacturing for this company had many advantages.As Case Company had a subsidiary in Puerto Rico, it allowed them to be revenue enhancementation exempt from U. S taxes. With these tax exemptions, it provided low income tax rates for Case Company. Case Company in any case did not have problems in regards to their customers. With 95% of their customers world hard-core to their company by re-purchasing orders annually. Company cash in hand were also a positive for John M. Case. The company did not need to part take in seasonal buying in approximately 10 years, but strategically kept $2 million lines of credit. By looking at the different components to John M.Case Company, the outlook for future endeavors seems to be profit sufficient. III. Analysis By lookin g at the different components to John M. Case Company, the outlook for future endeavors seems to be profitable. Johnson’s close to purchase this company would be a smart move financially. As the company has seen prosperous maturement throughout its years, its part in the market seems to describe low risk and high levels of profit. IV. Recommendation As the issue continues in coming up with the surplus $10 million, Johnson should look into more resources to obtain the extra funding.The financial state of this company is in pull in shape looking at the current proportion and inventory turnover in Exhibit 1 below. As the current ratio is well to a higher place 1, it secures the idea that John M. Case Company is able to pay back its short-term liabilities and assets. Having a confident number for their current ratio assures the company dirty dog handle financial issues that may come their way. With their loyal customers, low-cost manufacturing and large market share, the profits of John M. Case Company are endless. Exhibit 1 Current Ratio in 1984$8, 998/$1,266 = 7. 107 Inventory turnover$9,740/$588 = 16. 565\r\n'