“Reed’s Clothier” Case Study and Questions University of Phoenix FIN/370 – Finance for Business DATE “Reed’s Clothier” Case Study and Questions Reed’s Clothier Case Study Analysis Jim Reed, II the owner of Reed’s Clothier, a men’s clothing establishment is facing financial difficulties. Established in 1934, by Jim Reed to cater to the numerous Virginia Military Institute (VMI) graduates, the business struggled for the first several years. By 1976, the business annual sales had grown to
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Reed’s Clothier” Case Study and Questions Reed’s Clothier Case Study Analysis Jim Reed, II the owner of Reed’s Clothier, a men’s clothing establishment is facing financial difficulties. Established in 1934, by Jim Reed to cater to the numerous Virginia Military Institute (VMI) graduates, the business struggled for the first several years. By 1976, the business annual sales had grown to $800,000, where Jim Reed decided to retire and hand over the business to his son, Jim Reed II. In 1981, Jim
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Critical Thinking Application Paper Juan Vigil MGT/350 May 19, 2011 Robert Sell Critical Thinking Application Paper The world in which we as Americans live in is changing rapidly from social, economic, political, and even technological advancements. More than ever, we are face with new approaches to deal with these changes and to operate a business. This requires thinking critically and making wise decisions. “Thinking is the activity of the brain that can potentially be communicated”
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Reed's Clothier Case Study Beverly Jaquez FIN/370 August 3, 2011 Mr. Curtis Henson Reed's Clothier Case Study Reed’s Clothier was founded in 1934 by Jim Reed. In 1976 the company was turned over to Jim’s son, Jim Reed II. Since then Jim has made several changes to the company from expanding the retail floor space, modernizing the store to give it a contemporary look. Jim increased the amount of inventory because he believed that sales were lost due to an item not being available that a
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and compare Reed's results with industry averages. (Some industry averages are shown in Exhibit 4.) What do these ratios indicate? 2. Why does Holmes want Reed's to have an inventory reduction sale, and what does he think will be accomplished by it? 3. XXXXX XXXXX had adopted a very loose working capital policy with higher current assets than industry averages. If he merely tightens his working capital policy to the averages, should this affect his sales? 4. Assuming that Reed's can improve its
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rejected due to delinquency in the payment history and owing the bank $130,000 which needs to be paid within 30 days. Jim Reed’s personal banker, Harold Holmes, suggested rapid changes to the business, in order to regain control and pay off debts. Some of these changes include: hiring a consultant to overlook the financial situation and help manage Reed’s Clothier’s inventory system and reducing inventory and accounts receivables to the industry average. After going over the balance
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Reed’s Clothier Case Study FIN/370 November 02, 2011 The Reed’s Clothier Case Study Reed Clothier Case is a family owned and operated business that was established in 1934. Jim Reed, who is the founder of the establishment, is going through some financial difficulties. The first Virginia National Bank would not extend their line of credit, they also notified Jim on an overdue payment of $130,000, which needed to be paid within a month. Reed had made a choice to safe the business
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Reed’s Clothier is at the present time suffering from financial problems the owner Jim Reed is in fear of losing his business. The business has a bank note 45 day’s in arrears, Reed’s has a bank note of $130,000 that comes due in 30 days the company also has $85,000 in cash reserves, $491,000 in inventory, and $413,000 in accounts in accounts receivable that need to be collected. Reed’s Clothier has meet its financial obligations, and the company needs to convert inventory into cash. To determine
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Case 16 Reed’s Clothier Inc James Jackson University of Phoenix Finance for Business FIN 370 Mr. Arnold Harvey July 21, 2010 Case 16 Reed’s Clothier Inc Reed’s Clothiers was founded by Jim Reed in 1934 when Jim retired from the military. Over the years, the business grew, netting over $800,000 by 1976. Jim Reed then decided to retire and handed over the family business to his son, Jim Reed II. The younger Jim then decided to buy a building in a prime area in downtown Lexington, creating
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“Reed’s Clothier” Case Study and Questions University of Phoenix DATE “Reed’s Clothier” Case Study and Questions Reed’s Clothier Case Study Analysis Jim Reed, II the owner of Reed’s Clothier, a men’s clothing establishment is facing financial difficulties. Established in 1934, by Jim Reed to cater to the numerous Virginia Military Institute (VMI) graduates, the business struggled for the first several years. By 1976, the business annual sales had grown to $800,000, where Jim Reed decided
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