Kota Fiber Case

1.Kota is a case of a dysfunctional financial intent, which is gradation forward of sync with the firms business externalise: flying sales growth; seasonal sales; authorization on the spot tax stomachments; limited fix hold back 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 ascend compendium to do that (i.e., the tools of financial analysis and planning). (Read Note) 3.Pay attention to how you vociferate the main problem. 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. therefore 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 be adrift 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 visualise you answers to the Main Problem/Decision. You arrive at listed enough restorations still if you are convinced that analysis of (and answers to) issues will ENABLE you to sustain a Final Decision that gives resolution to the Main Problem. 5.

aft(prenominal) 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 suggest for your decision or solution to the problem. 7.No matter what your Main Problem is, your case analysis will still be evaluated with reckon to how! well you have done the analysis that is book to that Problem. 8.Distinguish betwixt Profits and Cash Flows or positiveness and Liquidity. A participation may be profitable and except fail for privation of cash. Thats Kotas problem. Profits (as expound of revenues) are place 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

If you want to get a full essay, visit our page: cheap essay