John Case

tooshie M. slip-up Company I. Statement of the Problem The rear M. effort Company was established in 1920 by Uriah grimace and was the boastfullyst manufacturer of note calendars in the United States. The guild was then handed off to John M. Case, and continued to prosper. John M. Case controlled a large amount of the trade allot in this industry along with an increasing number for sales. Then, John M. Case decided it was time to retire and sell the gild. Anthony W. Johnson, an employer of John M. Case Company, was interested in this purchase.After culmination up with $500,000 within the management group, Johnson cool it faced a dilemma of raising $10 million without fine- looking up control to outside investors. With this, Johnson inviteed to come up with a strategic financial plan in order to successfully book such a company. II. Statement of Facts and Assumptions With a large amount of the foodstuff share in favor of John M. Case Company, the business risk of exp osure was relatively utter for this industry. John M. Case owned 60-65% of the market share causing the risk to be substantially lower than other industries. Manufacturing for this company had many advantages.As Case Company had a subsidiary in Puerto Rico, it allowed them to be tax exempt from U. S taxes. With these tax exemptions, it provided low income tax rate for Case Company. Case Company also did not have problems in regards to their customers. With 95% of their customers being loyal to their company by re-purchasing orders annually. Company monetary resource were also a positive for John M. Case. The company did not need to part take in seasonal buying in or so 10 years, but strategically kept $2 million lines of credit. By looking at the different components to John M.Case Company, the outlook for future endeavors seems to be profitable. III. Analysis By looking at the different components to John M. Case Company, the outlook for future endeavors seems to be profitable. Johnsons decision to purchase this company would be a smart move financially. As the company has seen well-to-do growth throughout its years, its part in the market seems to show low risk and high levels of profit. IV. Recommendation As the issue continues in coming up with the redundant $10 million, Johnson should look into more resources to obtain the additional funding.The financial state of this company is in top shape looking at the current ratio and inventory turnover in demonstrate 1 below. As the current ratio is well above 1, it secures the caprice that John M. Case Company is able to pay back its short-term liabilities and assets. Having a confident number for their current ratio assures the company mass handle financial issues that may come their way. With their loyal customers, low-cost manufacturing and large market share, the profits of John M. Case Company are endless. portray 1 Current Ratio in 1984$8, 998/$1,266 = 7. 107 Inventory Turnover$9,740/$588 = 16. 565