“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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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 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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“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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Reed's Clothier, Inc. Case Study L. S. Moore Finance 370 March 30th, 2011 Reed's Clothier, Inc. Case Study Reed’s Clothier, Inc. Working Capital Policy and the background information, followed by the current situation and the Summary. Questions 1 and 4 will have been answered in an excel spreadsheet. Exhibit 16.1 Reed’s Clothiers Income Statement (in 000’s) Common Size
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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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of accounts receivable control would you suggest to XXXXX XXXXX? 7. Is the increase in sales related to the increase in inventory? (See Exhibit 5.) 8. What is Reed's cost of not taking the suppliers' discounts? Reed's Clothier Case Study Introductory Case Summary Jim Reed II is facing a dilemma of negative cash flow due to his business being slow. Jim’s decision for an increase of inventory has brought on uncontrollable debts. He was in hopes of increasing his line of credit thru his bank
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Introductory Case Summary Jim Reed II is facing a dilemma of negative cash flow due to his business being slow. Jim’s decision for an increase of inventory has brought on uncontrollable debts. He was in hopes of increasing his line of credit thru his bank, but is 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
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Reed’s Clothier Case Study FIN370 Finance for Business STUDENT University of Phoenix INSTRUCTOR DATE Reed’s Clothier Case Reed’s Clothier Inc. has struggled financially for the past three years. Owner, Jim has requested to his banker Harold Holmes to extend the company’s credit line in order to pay a $130,000 note payable that is going to be due soon. Unfortunately, the banker refused to give any additional credit and recommended to reduce the store’s inventory through an inventory reduction
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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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