Kota Fiber Case

1.Kota is a case of a dysfunctional financial program, which is musical note forward of sync with the firms business picture: flying sales growth; seasonal sales; mandate on the spot tax acceptments; limited fix condescend for extension lines. 2.Therefore, we study and analyze the structure of the financial plan to grade its pathologies and inadequacies. We use ratios, cash budget and cash draw compendium to do that (i.e., the tools of financial analysis and planning). (Read Note) 3.Pay attention to how you scratch the main paradox. In this case all is related to the stick requirement to clean up the credit line. Inability to do so somehow will unhinge Kotas operations. thence we need to review the financial plan (pro forma statements) to verify whether it cleans up the bank loan in 2001 and if not to devise a plan to correct that. Hence, the Main Problem/Decision is: Does the waterway financial plan clean up the bank debt? If not, what should we do t o that effect? 4.Issues for analysis: These argon the steps (blueprint of action) that will constitute you answers to the Main Problem/Decision. You arrive at listed enough bares solely if you are convinced that analysis of (and answers to) issues will ENABLE you to pay back a Final Decision that gives resolution to the Main Problem. 5.

afterward you have stated the Issues for Analysis, then you analyze each issue in depth. 6.Once all the steps/issues have been analyzed, you determine what they predicate for your decision or solution to the problem. 7.No matter what your Main Problem is, your case analysis will still be evaluated with respectfulnes! s to how well you have done the analysis that is book to that Problem. 8.Distinguish among Profits and Cash Flows or positiveness and Liquidity. A caller-up may be profitable and except fail for insufficiency of cash. Thats Kotas problem. Profits (as expound of revenues) are lay in accounts receivable or inventory, they cannot be used to pay bills. 9.Constructing financial ratios or doing financial statement...If you want to get a full essay, order it on our website: BestEssayCheap.com

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