Financial Analysis & Valuation
You will be writing a letter on your assessments on the financial performance of Horniman Horticulture. You need to address the accounts payable policy of Maggie Brown and discuss the erosion of the cash balance. You can do this by doing a cash flow worksheet to get operating cash flow (OCF). You can also address the free cash flow. It may help to look at inventory and accounts receivable and accounts payable.
You should also give some suggestions for solving the cash issue. You are free to suggest increasing revenue, reducing investment, increase business financing, or some other idea but no matter which ones you chose you should give some rationale on how to do this and why it should work.
Bring a hard copy