...Business Analysis: Haefren Baum “Show Me The Money” Christy Lopez Johnathan Putmon Harikrishna Patel Nikhil Dargani Darrell Springer Rayhaan Malik Financial Analysis and Introduction to Loan Structuring Professor Hadiye Aslan February 16, 2016 Name of the Business Haefren Baun Nature of the Business Haefren Baun is a retailer of furniture located in Germany. They have been purchasing furniture from the furniture manufacturing company, Wiegandt, which manufactures high-quality furniture. The retailer was once a partnership that was established in 1965, but later became incorporated in 1970. They have been purchasing furniture from Wiegandt since 1968. The company began operations in downtown Cologne but later expanded to three additional outlets in Rhineland. Marketing Analysis Haefren Baun’s product is high-quality furniture, where the company is focused on the German market. Business was booming until 1993, which then turned to a bust due to consumer confidence slipping. This leads to a decrease in demand for furniture, causing the demand cycle to experience a downward trend. The decrease in demand can be derived from the fact that the economy had declined by 1.2%. By the end of 1993, the sales figures were DM 18,647. The sales had decreased by approximately 19% from 1993 to 1994. Sales were on a steep decline and to entice customers, Haefren Baun had to lower their prices on the furniture. The reasoning behind this was also to maintain the sales volume. In...
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...Case Preparation Questions (Note that questions sometimes continue on the next page) Use a spreadsheet program such as Excel for computations for all cases Riley Supply 1. Prepare one indirect cash flow statement (operating-investing-financing) for 2004-2005 and a second one for 2005-2006. Do not aggregate any accounts. 2. Calculate common-size income statement for each year. 3. Calculate all financial ratios (use “A Basis Set of Financial Ratios”) for each year. You will always be expected to have all ratios and cash flows statements for all years of data. Coming to class without all if these completed means that you are unprepared for quizzes and class discussions. 4. Identify the major factors influencing Riley’s cash flow. Use the cash flow statements together with the ratios and common-size statements. 5. What is the length of Riley’s cash conversion cycle? Does it take a long time for Riley to go from spending cash to receiving cash? Why? 6. What are the implications of Riley’s cash flow for the financing needs of the firm? Westmoreland Inc. 1. Examine the beginning financial statements (2005) and the pro forma statements (2006 projected) for Westmoreland (Exhibit 1). Do complete ratio, common-size income statement and cash flow statement analyses with these data. The pro forma statements reflect management’s opinion about what will happen in the future. Incorporated into these statements is their business plan. 2. What...
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