Hampton Tool Machine

Hampton Machine dent Company Background Hampton Machine Tool Company was established in 1915 to engage in the work tool manufacturing worry. The accompanys major nodes included the aircraft manufacturers and motorcar manufacturers in the St. Louis area. Since the establishment, Hamptons conservative financial policy helped the sure to weather the business cyclical fluctuation in bully good industry, and had no debts on its balance sheet during cristal years foregoing to 1978. President of Hampton is Mr. Benjamin G. Cowins. Traditionally, the company had unbroken its notes balances at St. Louis National Bank. Request The request is for the reformation of its term debt of $1 million, which originated in the blockade of December 1978 and would payable in the end of kinfolk 1979. In additional to the file name extension of this give, Hampton also requested some other $350,000 to finance equipment purchases. This loan would be needed by the end of October and paya ble at the end of the year with monthly occupy of 1.5% of principal. hard money Analysis Based on the information provided by Mr.

Cowins, an aggregation of cash funding and usage that Hampton had from November 1978 to August 1979 is below: switch over in Cash championshipUsage attach in brim debt$1,000,000 root repurchase$3,000 amplification in retained cyberspace$883,000 append in inventories2,163 cliff in cash$961,000 Decrease in accruals9 Increase in customer advances$726,000 TOTAL USES OF funds$5,172 Increase in accounts payable$600,000 Decrease in accounts due$561,000 Increase in taxes payable$329,000 Decrease in wampum improve assets$92,000 Decrea se in prepaid expenses$20,000 Total Cash F! unding$5,172,000 According the analysis above, there is a heavy(p) amount of cash disburses to inventories that drain out the cash on hand that Hampton has. The add up amount of change in cash, customer advances and taxes payable is $2,016,000, which is roughly able to cover the increase in...If you indigence to get a full essay, order it on our website: OrderEssay.net

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