State of Confusion Paper

Running head: reeds clothier case reed instruments Clothier Case Dushawn Shaw University of Phoenix FIN/ 370 Instructor: Ursula Price 12/01/10 vibrating reeds Clothier Case Reeds Clothing is set about very tough decisions with financing. Jim would be faced with making a great deal of educated decisions. There argon umpteen clothing stores in America, however Jim did non involve to fall back the business him and his father had held for so many years. Due to both(prenominal) very unwisely business choices Reed allow for no longer be able to make the same decisions he has made preiously. There are many choices Reed moldiness make however, to be successful he must win a strict policy making guideline with fit caudex and profits. Success will depend on the intervention of financing by Mr. Reed. 1. [pic] 2. Holmes wants Reeds to hold in a inventory reduction sale because first Reeds inventory is too high having a 30.9% inventory compared to the industries median(a) of 20%. Holmes believes that by not doing this Reeds will not raise the cash required to meet its financial obligation. 3. If Jim Reed tightens up on his working capital this should not affect his sales too much. Holmes forecast that doing this would only dishonor his sales by less than five percent each year. 4. 5.

I would recommend to Jim to use a perpetual inventory system that records every sale immediately. This should closely monitor what is vent out and how much it going out. 6. Because Jim is not the type of individual who wants to be in any type of confrontation with his customers he could hire a collection agency to deal with his accounts which are overdue. 7. The dinero sales are related to the increase in inventory because each year as the inventory increases the net sales increase on a consistent bases. 8. The be that Reeds encounters is that the money he could have bring through from the discounts could have been applied to other accounts he may have owed on, but because he didnt take the discount his accounts became... If you want to get a full essay, order it on our website: Orderessay

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