Hampton Machine Tool Company, a machine tool manufacturer, was founded in 1915. Hampton's customer base is made up primarily of military aircraft manufactures and automobile manufactures in the St. Louis area. Hampton felt the boom in the 1960s with record setting profits in the mid to late 1960s. Hampton slowed down in the 1970s with the withdrawal from Vietnam War and the oil embargo. Hampton stabilized by the late 1970s and now has a larger market share as other competitors were unable to make it through the tough times. It is now September 14, 1979 Hampton has asked for an extension to the end December 1979 on the $1 million loan they took out from the St. Louis National Bank at the end of December 1978. The loan was originally …show more content…
Not paying the dividends is the number one thing Hampton must remove from their current cash budget plan.
They can start to repay some of the principle as soon as possible to reduce the interest payments. This will help reduce the amount of interest paid in total (Exhibit 2). While this solution does not eliminate the problem of still being unable to repay the full loan, they are able to lessen their cash shortage. The assumptions I used for this budget was that approximately $500,000 on hand is all they will need from month to month. I also assumed the $500,000 on hand is not earning interest which would also help generate cash which would help in repayment. The ending cash on hand for October is $710,000 to help cover for November which has a larger amount of cash outflows then cash inflows. This on it's own would bring their cash shortage to $319,500 a savings of $12,000. Still this along with the removal of the $150,000 in dividends will still not eliminate their cash shortage. With the two combined, they still will have a shortage of $169,500. (Exhibit 3)
They can extend the repayment to the future when it will be possible for them to be repaid. I have worked a cash budget out into January of 1980 when they will be able to collect the cash from the large number of orders they expect to finish in December. I made the assumption that the proceeds from a sale would not be collected until next month since their sales terms are net 30 and most
A/ Hampton Machine Tool Company was unable to repay its loan on time due to several factors. One of such factors is the fact that the stock repurchase, for which the loan was initially requested, was a major cash disbursement of $3 million. In the period between November 1978 and August 1979, stock repurchase represented 58% of total expenditures for that period, while inventory purchases represented 42% of total expenditures.
Then comes the story of his decline. For my own grandfather it was not his hands, but his heart that stopped working. Sadly, with Daniels' grandfather the end was not so swift or kind. “My grandfather sleeps in his front room / while I pound on the door / a radio apart on the floor.” (25-27).
A/ Hampton Machine Tool Company was unable to repay its loan on time due to several factors. One of such factors is the fact that the stock repurchase, for which the loan was initially requested, was a major cash disbursement of $3 million. In the period between November 1978 and August 1979, stock repurchase represented 58% of total expenditures for that period, while inventory purchases represented 42% of total expenditures.
Industrial Equipment INC. sold and serviced a variety of industrial equipment and related products to hospitals, nursing homes, hotels, motels and various other organizations in the four Atlantic Canadian provinces of New Brunswick, Nova Scotia, PEI and Newfoundland/Labrador. In addition to distributing a broad line of specialized equipment IE provided design, specification and planning assistance to architects,
Harnswell Sewing Machine Company is dedicated to the manufacture of industrial sewing machines, has an experience of over 50 years in the market, this factory is specialized in the manufacture of automatic machines engaged in the manufacture of shoes, accessories and belts security.
The company lost money almost every year since its leveraged buyout by Coniston Partners in 1989. The income generated was not sufficient to service the interest expenses of the company which stood at $2.62B in 1996. From Exhibit 1, we can say that interest coverage ratio computed as EBIT / Interest Expense was 1.31 in 1989 and has been decreasing over years and currently stands at 0.59. This raises a question of how the company can meet its interest payments without raising cash or selling assets.
Intuitively, we believe the portrayal of the machine in popular image-making during the Industrial Revolution became increasingly critical as time went on. With the building up of urban areas and unfurling of train tracks across the countryside, people's lives were forever changed by the machine.
Johnson & Johnson have a fairly predictable cash disbursement and cash flow budget process unless they have many customers using the credit terms. They will then need to assure they can cover the expenditures associated with manufacturing their product awaiting the payment from the credit contracts. They can charge interest on the creditors that offset and cover their cost associated with this
The Hunter Manufacturing company is currently the primary supplier of tent and truck heaters for the United States military (www.hellotrade.com). Founded in 1937, the company developed a relationship during World War II by providing portable clean, safe heating systems for the U.S. troops. Over the years, the Hunter manufacturing and the U.S. Government continued its relationship. It 2001, post 9/11, the need to increase mobilized troops became necessary and Hunter Manufacturing was called up to meet the increasing demand. In order to____Hunter made the decision to purchase two companies—the supplier that made the tents to house the heaters and the company that produced the power generators and air condition equipment for the shelter and tent
Coupled with these needs is Mr. Edward’s desire to pay a $1.2 million dividend at the end of the fiscal year.
The manufacturer of our juicer is Black & Decker who specializes in power tools, hardware, and home improvement products. Our product is a home improvement device used to make fresh citrus juice. Possible improvements that were voiced by customers was the need for a lock to secure the lid and an easier reverse mechanism when the juicer auto-reverses. Whenever customers poured juice, they would run the risk of the lid flying off. It was easy to use and to make juice. The pulp control was effective in keeping out most of the pulp. However, even when testing the juicer, ourselves, we noticed the lid slipping off. Our team decided we will redesign the product to prevent the lid from coming off easily. We took apart the juicer, labeling each part with tape and its order number. As we did this, we transferred this information into our juicer’s Bill of Materials. We were able to see many functions and subfunctions in our application as we took it apart. We made a flowchart, showing these main functions of the juicer. Our juicer, prevents pulp from seeping into the juice, holds the juice in a container, and rotates to extract as much juice as possible. To make the necessary modification, first we came up with many possible alternate ideas and narrowed them down to four. We proceeded to make a Paul & Beitz matrix, deciding on criteria and ranking each alternate design. We completed our evaluation and had an alternate design chosen. To redesign our product, we needed
In the early 1800, America was growing quickly in many aspects, especially economically. In the north, there was a great internal improvement industrially and in trade. This improvement led people to invest in the transportation for benefit of the trade which made many of them to became rich. In 1825 the northern build the Erica canal which led to food and products booming into New York from west. Also, there was a building booming in the canals followed. In addition, there was a great increasing in using new machines like sewing machines, clothing machines, farming machines. according to an article published by the New York Times in January 7, 1860 “The inventive genius of man, ever alert to furnish the world with machinery for saving labor and cheapening the cost of manufactures, seemed to regard man as the only laborer, prior to the invention of the sewing machine.” Another example for the American booming was building more than 30,000 miles of railroad link the country together. This industrial revolution in the north created jobs and this led to open more stores and banks to finance people and businesses. And this booming cause more immigration from Ireland and Germany to work. In the other hand, the major source for jobs and wealth in the south was agriculture. They mainly grow rice, tobacco, and cotton. Most of the them were poor white farmers and the big plantation owners were mostly slaves owners. There were more than one million slaves working in these plantation
What would a person say that makes a world goes round? Money, emotions, power and what not? But there would also be many who would say that it is the aesthetics. And who can keep arts and crafts apart and separated from the idea of aesthetics and beauty? Crafts are the reflection of the beauty not only of the world around us but of the human mind itself as well. It is well known that many people hold a passion for crafts and arts and take it to such a high level that they end up making it their career. It shouldn’t be surprising that so many universities today offer a number of courses on different crafts and have multitudes of MFA’s. If it is such a huge field in learning and education today, it definitely has to be a grand source of income too. Many people choose arts and crafts as their career and excel it is tremendously. Johnson Crafts
Impact Hammer Crusher Type EV 200*300 for crushing of limestone. The Hammer Crusher is of single rotor type, with outlet grates and inlet roller, and is designed for larger- size reduction in one stage.The feed fall upon two slowly rotating shocks- absorbing roller transporting the material to be crushed in the crusher properly. Part of the fines is separated off at this stage. In the crusher, the hammers break up the material and hurl it against the lining of the upper part of the crusher for further fragmentation. Final crushing takes place at the adjustable crushing plate and the outlet grates. The rotor shafts runs in amply dimensional spherical roller bearing in split bearing house with oil bath lubrication and grease- filled labyrinth seals. The bearing housings are placed on rigid bottom frame of cast steel, bolted together. The bottom frame is provided with large, hinged access doors and lined with wear resistant, bolted- on lining plate, at areas exposed to wear from crushed material.