Wk 4 Individual Assignment Jim Reed Clothier

Reeds Clothier, Inc workings Capital Policy Krashanti Wyatt Fin/370 10/24/2011 Richard Jenkins Reeds Clothier, Inc Working Capital Policy Jim Reed II had banked with send-off Virginia internal border for almost 30 years and his father, who had establish Reeds Clothier in 1934, had only banked with prototypal Virginia. Whenever Jim went to First Virginia National curse, he always dealt with move Roberts, his VMI classmate. Jim and bottle cork would talk or so the good old geezerhood at the military school, an ontogenesis in the direct parentage of book of facts had always been granted without Bob looking at Jim fiscal statements. When Jim went to First Virginia National Bank this time he was introduced to Harold Holmes. Jim found out that Robert had been promoted to a cosmos relations personal credit line with the bank. Jim Reed went to the bank to give out hold some increase his line of credit another $100,000. Holmes asked Jim to see his up-to- date apparel of financial statements. Holmes talked to Jim about cash flow problems and however mentioned the conjecture of financial distress. Whenever Jim would meet with Bob, he never asked to see Jim financial statements. Holmes informed Jim that the bank would not extend their line of credit any further until the overdue not collectible for $130,000 be paid within 30 days.

Holmes told Jim that he ask to void the parentages broth and to strongly extract an inventory reduction sale. Holmes suggested that Jim request the serve well of a adviser who could help him establish a better inventory system. Holmes suggest ed that Jim reduce his inventories and accou! nts receivables to the fabrication averages. Finally, Holmes suggested that accounts receivable be reduced by sharply accumulate its past due accounts. Jim was very disappointed; he knew that he had allowed his collections efforts to lapse in his efforts to increase sales. Jim Reed realised that his store was in serious financial trouble. Reed didnt lie with what to do. I think that Reed should take Holmes...If you essential to get a full essay, order it on our website: BestEssayCheap.com

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