Why is the company short of cash, can they sustain itself and how should they handle the situation?
LPP soon started receiving requests for the kits from all over the country, as word spread about their availability. Even without advertising, LPP was able to sell its full inventory every month. However, the company was becoming financially strained. Nancy and Sue had about $100,000 in savings, and they invested about half that amount initially. They believed that this venture would allow them to make money. However, at the present time, only about $30,000 of the cash remains, and the company is constantly short of cash.
Nancy Ginavan has come to you for advice. She does not understand why the company is having cash flow problems. She and Sue have not even been withdrawing salaries. However, they have rented a local building and have hired two more full-time workers to help them cope with the increasing demand. They do not think they could handle the demand without this additional help.
Nancy is also worried that the cash problems mean that the company may not be able to support itself. She has prepared the cash budget shown on the next page. All seminar customers pay for their products in full at the time of purchase. In addition, several large companies have ordered the kits for use by employees who work in remote sites. They have requested credit terms and have been allowed to pay in the month following the sale. These large purchasers amount to about 25% of the sales at the present time. LPP purchases the materials for the kits about 2 months ahead of time. Nancy and Sue are considering slowing the growth of the company by simply purchasing less materials, which will mean selling fewer kits.
The workers are paid in cash weekly. Nancy and Sue need about $15,000 cash on hand at the beginning of the month to pay for purchases of raw materials. Right now they have been using cash from their savings, but as noted, only $30,000 is right.
biggest lose ever with short selling?
Hi, I have been reading alot about short selling stocks…and I have been paper trading and that has been going well. It’s so easy to make money short selling..just buy when the stock is super high and you know its going to go back down…but its also scary to think about that you loses can be unlimited. Whats the worst thing that has happened recently in a short sell?? Like lets say if you short a stock at 5.00 and hold it over night…and then the stock is at 8.00 the next morning…has anyone ever heard of someone being wiped out?? thanks =)
Does anyone know how to accomplish a short sale without damaging my credit? Or just how to get rid of a condo?
I’m trying to get rid of my condo because I can no longer afford my association fees along with my mortgages.
At this time I’m able to keep up with my 1st and 2nd mortgages as long as I don’t pay my monthly association fees which are close to $400/month for only a 1bed/1bath.
I can attempt a “short sale” with an investor but, from what I’ve heard I’d have to stop paying my mortgages (1st and 2nd) so that an investor can show to the bank that I cannot afford my condo and therefore convince the bank that they are better off selling it at a discounted price to the investor rather than foreclose on me (which is much more expensive to the bank than to sell at a lower price).
However, these late payments would eventually be reported to my credit, and considering I have really good credit and I’d rather if it stayed that way.
Is there any way to accomplish a short sale while protecting my credit or any other method for unloading a condo?
Housing and value, builder short selling the model?
We just purchased a new house 7 months ago, the builder just recently sold the model, which is little bigger but comparable to ours at a 200,000 k discount, thereby killing our value.
do we have any legal recourse since this action has instantly affected our home value, as we paid more then the selling price of the model house?? is there any law that protects us or can we sue???
anyone ever been burned bad by short selling?
stories?
What can be done about a 1099 from a lender for a rental property if the property is sold in a short sail if?
you could never afford to pay the amount back in one lump sum. This would be for the State of OHIO?
how much is the short term capital gain tax in india for selling residential properties?
we r selling residential property in 2 years n simultaneously buyn another 1 wid increas in bank loan..wheather we require 2 pay the short term capital gains tax?if s how much? is there a way to avoid it..
stock short selling–delivery rule!!!?
Is it true that If I sell stock first i have only three days to buy back?what if I have two account with different broker…so I can sell short in one account,and place buy order like regular on another account?so if i lose money in one account, my loss will be covered in another account? For example, If I short sell 100 shares of yahoo in one account,and buy 100 shares of yahoo in another broker account..so if prices wil go down, I will buy back the short sell and make profit,that will cover my loss to my second account.. is it possible?please let me know..
how is the house i was renting a short sale?
i moved out because the landlord was short selling the house but how is that possible considering he rented it out and he was a investor
(Short selling) what about what the owners of the company did bailing out with a golden parachute.?
wow thanks for the answers on short selling, but isn’t the same thing the owners of the company did bailing out with a huge gain..?
