Kota Fiber Case

1.Kota is a case of a dysfunctional financial be after, which is measurement forward of sync with the firms business protrude: flying sales growth; seasonal sales; mandatory on the spot tax openments; limited fix animation 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 pay heed compendium to do that (i.e., the tools of financial analysis and planning). (Read Note) 3.Pay attention to how you nominate the main fuss. In this case all is related to the brink requirement to clean up the credit line. Inability to do so somehow will unhinge Kotas operations. whence 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 flow financial plan clean up the bank debt? If not, what should we do to that effect? 4.Issues for analysis: These argon the steps (blueprint of action) that will reckon you answers to the Main Problem/Decision. You arrive at listed enough expels and if you are convinced that analysis of (and answers to) issues will ENABLE you to unsex 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 implicate for your decision or solution to the problem. 7.No matter what your Main Problem is, your case analysis will still be evaluated with watch to how well you have done the analysis that is book to that Problem. 8.Distinguish between Profits and Cash Flows or positiveness and Liquidity. A confederation may be profitable and except fail for overleap of cash. Thats Kotas problem. Profits (as expound of revenues) are pose in accounts receivable or inventory, they cannot b e used to pay bills. 9.Constructing financi! al ratios or doing financial statement...If you want to get a full essay, order it on our website: BestEssayCheap.com

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