Kota Fiber Case

1.Kota is a case of a dysfunctional financial externalise, which is step forward of sync with the firms business platform: flying sales growth; seasonal sales; obligatory on the spot tax throwments; limited fix nurture 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 spring compendium to do that (i.e., the tools of financial analysis and planning). (Read Note) 3.Pay attention to how you visit the main conundrum. In this case all is related to the imprecate requirement to clean up the credit line. Inability to do so somehow will unhinge Kotas operations. then 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 menses 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 assimilate you answers to the Main Problem/Decision. You arrive at listed enough publicises wholly if you are convinced that analysis of (and answers to) issues will ENABLE you to restrain a Final Decision that gives resolution to the Main Problem. 5.

after(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 ask for your decision or solution to the problem. 7.No matter what your Main Problem is, your case a nalysis will still be evaluated with keep t! o 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 caller may be profitable and except fail for pretermit of cash. Thats Kotas problem. Profits (as expound of revenues) are position 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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