...LAWSONS James Sutherland January 29, 2014 J. Austin Davey COMM 1007-01 Table of Contents Executive Summary……………………………………………………………3 Problem Statement…………………………………………………………….4 Problems Main/Sub-Issues…………………………………………………….4 Analysis …………………………………………………………………………..4-6 Statement of Changes (Description)………………………………………….6 4 C’s of Credit……………………………………………………………………..6-7 Alternative Analysis………………………………………………………………6-8 Recommendation…………………………………………………………………..8 Exhibit 1…………………………………………………………………………….8-10 Exhibit 2………………………………………………………………………………10 Exhibit 3………………………………………………………………………………..10-11 Executive Summary Paul Mackay is the owner of Lawson’s and is a financial bind. He requests Jackie Patrick to lend him a $194,000 long term bank loan and $26,000 line of credit. Going through the financial statements and ratio’s some interesting things pop up. Net sales have increased as well as net earnings, which is a positive for the company. They run into problems when their inventory builds up exponentially post expansion and their trade debt grows due to high interest rates they are owing FWL. They have an incredibly weak ability to pay their current liabilities based on their acid test ratio. Their inventory is staying on their shelves way too long, and in a retail industry those items could lose value. They have a lot of liabilities owing based on their net worth to total assets ratio, and their interest coverage indicates their assets are not liquid whatsoever. Lawson...
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...Mr. Paul Mackay, a sole proprietor, has approached the Commercial Bank of Ontario in order to obtain an additional $194,000 bank loan and a $26,000 line of credit. Paul owns and operates a general merchandising retailer in Riverdale, Ontario named Lawsons’. The bank loan is needed for Mr. Mackay to reduce his trade debt that has a sheer 13.5 per cent interest penalty. The line of credit is needed for sales seasonal downfalls so that Mr. Mackay could properly manage those tough months. Jackie Patrick, a first time loans officer, has been appointed to Mr. Mackay’s request. Although anxious to finish her first loan, Ms. Patrick knows that this particular case is a difficult one. Analysis Sub problems/Issues In order to start up his business, Mr. Mackay secured a $50,000 long-term loan from the Commercial Bank of Ontario. The bank loan was secured by all company assets and a guarantee from Lawsons’ supplier Forsyth Wholesale Ltd (FWL). Although since then, Lawson has produced positive earnings each year, but after drawings, equity has decreased each year as well. This is a good indication that the problem may be the management and its absence of understanding business operations. Another issue regarding the request is the fact that it is Ms. Patrick’s first bank loan. As it indicates that it is her first day on the job and is anxious to come to a decision. Supervision from her superiors along the way would be beneficial on such a complicated bank loan request...
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...is not sure about if the loan request by Lawsons should be approved. Also Jackie is new on her position, and the time limitation of decision making is tight. The analysis start at the cash flows. After determining the main source and use of cash, the meaning of ratio is present. In addition, forecast the projected financial statement. Analysis the 4 C’s of Credit. Three alternative raised:1.Deny the requirement. 2. Approve the loan, lend $194,000 to Lawsons. 3.Given part of the loan to Lawsons. 4.Approve the loan of $194,000 with FWL’s guarantee.After compared each alternative, the fourth one was chosen to be the perfect business plan. Problem statement: Jackie Patrick, a loans officer for the Commercial Bank needs to make the decision within a few days:grant the additional loan to Lawsons or not. Problems/Sub-problems/Issues • Jackie Patrick is a newly appointed loans officer. Lack of experience may lead to wrong decision. This is her first decision as a loans officer, and lawsons requested $194,000 loan, that is a lot of money. She is eager to impress her boss, so she may be too nervous to make the appropriate decision. • lawsons’ financial position lawsons’ financial position is a big issue. Accounts receivable increased greatly, so accounts payable and other current liabilities. Jackie needs to scrutinize all relevant information, and finds the reasons of the change. • lawsons’ trade debt The current trade debt was...
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...Executive Summary Due to large trade debt and interest penalties a general merchandising retailer is experiencing difficulties in repaying such debt. Analysis of the store Lawsons showed that currently the store cannot pay current liabilities when using an Acid Test ratio that was calculated to be .069:1 and when inventory was included it showed a Current Ratio of 1.08:1. When looking at projections for Lawsons it showed that issues were not occurring among operational aspects of the store. Future sales were shown to increase and previous years showed net earnings in positive numbers before Lawsons borrowed money at interest rates that were too high for them to support a successful business. Giving a loan to Paul Mackay, owner of the store, would allow for Lawsons to reduce interest rates while moving some current liabilities to a long-term bank loan. Paul Mackay has been an active member of the community as well as a hard worker at Lawsons. He has shown that the store is dedicated towards low and middle income families. This has allowed him to build a social relationship with the community increasing amount of “loyal customers”. In conclusion, the fact that Lawsons is run by an impeccable and community driven man as well as being able to generate profit, if not for the trade debt accumulated, within the store a loan of $194,000 should be given to Paul Mackay with confidence that the stores long-term debt paying ability will be more than...
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...Located in Southeast Asia, the Socialist Republic of Vietnam is bordered to the north by the People’s Republic of China, to the west by Laos and Cambodia, and to the east and south by the South China Sea. The country is a mere 127,000 square miles but has a population of almost 86.2 million. The language is Vietnamese, and the principal religion Buddhism, although there are a number of small minorities, including Confucian, Christian (mainly Catholic), Caodist, Daoist, and Hoa Hao. In recent years, the country’s economy has been up and down, but average annual per capita income still is in the hundreds of dollars as the peasants remain very poor. One of the reasons that Vietnam has lagged behind its fast-developing neighbors in Southeast Asia, such as Thailand and Malaysia, is its isolation from the industrial West, and the United States in particular, because of the Vietnam War. From the mid-1970s, the country had close relations with the U.S.S.R., but the collapse of communism there forced the still-communist Vietnamese government to work on establishing stronger economic ties with other countries. The nation recently has worked out many of its problems with China, and today, the Chinese have become a useful economic ally. And Vietnam is well on its way in establishing a vigorous trading relationship with the United States. Efforts toward this end began over a decade ago, but because of lack of information concerning the many U.S. soldiers still unaccounted...
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...Ontario. Mackay is the sole proprietor of Lawsons. Lawsons is a general merchandising retailer located in Riverdale, Ontario. Lawsons offered competitive prices and targeted the low to middle income families. Their product selection varied from men, women’s and children’s clothing to household items, toys or health and beauty items. To help start up his business; in 1998 Mackay took out a loan of $50,000 from the Commercial Bank of Ontario. Due to his substantial trade debt he accumulated over the next 5 years Mackay went to take out another two loans. The first was a bank loan of $194,000, in which he planned to use to pay off his outstanding trade debt with his primary supplier, Forsyth Wholesale Ltd (FWL). The second, a line of credit of $26,000 he would use to service his monthly cash shortage. Of the over $200,000 trade debt owed to FWL Mackay has been paying a tax penalty of 13.5 per cent on $193,668. By transferring his debt to the bank Mackay hopes to reduce his tax penalty and pay off his debt faster. Also in 2003, FWL funded the expansion of Lawsons store size in order to increase future sales. The expansion totaled $36,000 and was added to Lawsons trade debt. Mackay felt that the expansion of his store was necessary to better display his merchandise. The 2003 sales results indicated that the expansion did indeed help improve sales volume. Analysis Patrick is assigned the task of evaluating the financial information of Lawsons to determine whether or not she should...
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...Executive Summary Problem Statement Mr. Paul Mackay, a sole proprietor, has approached the Commercial Bank of Ontario in order to obtain an additional $194,000 bank loan and a $26,000 line of credit. Paul owns and operates a general merchandising retailer in Riverdale, Ontario named Lawsons’. The bank loan is needed for Mr. Mackay to reduce his trade debt that has a sheer 13.5 per cent interest penalty. The line of credit is needed for sales seasonal downfalls so that Mr. Mackay could properly manage those tough months. Jackie Patrick, a first time loans officer, has been appointed to Mr. Mackay’s request. Although anxious to finish her first loan, Ms. Patrick knows that this particular case is a difficult one. Analysis Sub problems/Issues In order to start up his business, Mr. Mackay secured a $50,000 long-term loan from the Commercial Bank of Ontario. The bank loan was secured by all company assets and a guarantee from Lawsons’ supplier Forsyth Wholesale Ltd (FWL). Although since then, Lawson has produced positive earnings each year, but after drawings, equity has decreased each year as well. This is a good indication that the problem may be the management and its absence of understanding business operations. Another issue regarding the request is the fact that it is Ms. Patrick’s first bank loan. As it indicates that it is her first day on the job and is anxious to come to a decision. Supervision from her superiors along the way would be beneficial on...
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...She attracts lots of males * Wears Make- up * Purpose: The purpose is to sell products Nigella Lawson Spoken Language Essays and Term Papers ------------------------------------------------- Top of Form * Keyword(s): Search * Any words * All words * Exact search/except words * Exact phrase: Exclude words: * Advanced Search Bottom of Form Documents 1 - 20 of 1000 * ffgfgfg the spoken language of nigella Lawson and Gordon Ramsay Nigella Lawson and Gordon Ramsay, two very famous TV chefs, have completely different ways of presenting themselves verbally. Ramsay is well known for his fiery temper and for being extremely offensive at times by using blasphemy. Nigella Lawson... Premium 393 Words 2 Pages * Investigate the ways spoken language is used By the TV chefs Nigella Lawson and Jamie Oliver Investigate the ways spoken language is used By the TV chefs Nigella Lawson and Jamie Oliver Nigella Lawson and Jamie Oliver have the same purpose to entertain and share their love of cooking but they go about it in different ways. Lawson and Oliver differ in many ways, for starters Lawson is all about sharing... Premium 771 Words 4 Pages * Spoken Language Questionaire 4.6.13 Questionnaire for English controlled assessment – media chef 1. What chef do you prefer to watch on your TV screens; Nigella Lawson or Gordon Ramsay? --------------------------------------------------------2. Circle the answer; Does the chef...
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...In Mary Lawson’s novel Crow Lake the ponds become an important part of the plot. The pond symbolizes Kate’s childhood, the bond between Kate and Matt, and Kate’s future choice in her career. Kate’s memories of her time at the pond connect her to various events and important moments in her life. While talking about the pond, Kate mentioned “There is no image of my childhood that I carry with me more clearly than” Matt and her younger self lying on their stomachs at the edge of a pond (4). Kate stated how important their trips became to her. At the end of the novel, when Kate and Matt take Daniel to the pond, Kate had a realization. She said “The other ponds, our pond included, are just as they have always been.” (291). After many years of thinking that her brother was a failure, that Marie Pye getting pregnant ruined his chances of going to school and becoming someone with an education. Kate comes to the conclusion that she was the one who grew apart and chose to deny that everything was there just as they have always been. It is not the ponds that changed, it was Kate herself. The pond also became the bond that linked both Kate and Matt. Kate reminisced that when Matt first began to take her to the pond she was so small she had to be carried on Matt’s shoulders. Kate loved spending time with her brother; she liked that she came to known the creatures above and below the water. They spent endless hours there as...
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...Accounting Group Presentation Outline I. Intro We are group B and our presentation is on the solvency of Lawson Software. To decide how solvent Lawson is on a scale of 1 to 10, with 10 being the highest, we chose to look at their Current Ratio, Quick Ratio, Interest Coverage, and Cash Flow Profile over the past 2 years. After looking over our data that was collected, we chose to give Lawson a rating of 6, due to their decent ratio numbers, even though some are in decline. II. Numbers A. Current Ratio (Current Assets/Current Liabilities): 2010:1.25 - (570,113,000/455,079,000) 2009:1.49 - (652,095,000/438,098,000) B. Quick Ratio: 2010:1.1 (375,917,000+117,976,000+4,664,000)/455,079,000) 2009:1.3 (414,815,000+152,666,000+4,242,000/438,098,000) C. Interest Coverage: 2010:5.20- ((40,636,000+27,612,000+16,238,000)/16,238,000) 2009:4.69- ((35,922,000+21,731,000+15,625,000)/15,625,000) III. Cash Flow Profile *I haven’t finished this part of the assignment yet* IV. Summary A. By looking at our data presented, as well as how Lawson has dropped their ratios closer and closer to that 1.0 line of being even, we stand behind them as a 6 ranking in solvency at this moment in time, with the belief that at this rate, within a couple of years that number will drop closer to...
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...PR company managed a celebrity’s image * Nigella Lawson- Mark Hutchinson Management has managed Nigella Lawson’s PR since the publication of her groundbreaking cookbook How To Eat in 1998. Since then he has managed publicity for all Nigella’s projects including television series and product launches in the UK and worldwide. Nigella Lawson looks very feminine due to her curves and her whole physique. She conforms to the male gaze, as she is very feminine. She is shown to be classy and very lady like; this would attract the male audience’s attention. Nigella Lawson comes across as the stereotypical women to have, as she is presented to be perfect. From the dog days of late 2013, which saw her accused of being ‘off her head’ on coke by ex-husband Charles Saatchi, and her private life dissected in court at the trial of her two former assistants after they were found not guilty of a £685,000 fraud on the accounts of her and her former husband. She chose to admit taking cocaine on seven occasions as she gave evidence against Elisabetta and Francesca Grillo, who had been accused of spending lavishly on family credit cards without the permission of her or her husband of 10 years Charles Saatchi. The jury of seven men and five women handed down the not guilty verdict after eight hours and 52 minutes of deliberation. The jury had heard claims from the Grillo sisters that the use of cocaine and cannabis was rife in the Lawson home as part of a defense aimed at showing a household...
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...Abstract The purpose of this paper is to analysis the case study “Dollar General Uses Integrated Software” The paper will seek to understand various issues concerning the implementation of the system as presented in the case study. It shall discuss the various facts concerning the implementation including the reasons for the needing the system,explaining why the old system created problems for Dollar general.The paper shall consider any alternatives to the software in order to reduce costs. It shall also make suggestion on what other software Dollar general my acquire for Lawson Software giving reasons as to why the software acquisition is necessary. Dollar General Uses Integrated Software Introduction Information systems are a must have for any organizations once int has grown past a certain size. This is not to mean that small organizations don’t need information systems.This is systems are often implemented with a promise to garner profits or reduce costs,either why it earns the organization money.Dollar General company which deals with the sale of food, apparel, home-¬ cleaning products, health and beauty aids, and more,competing fiercely with other stores.It is quite a big organization operating more than 8000 stores in 35 states and generated an excess of $9.5b in 2007. The company doubled its size between 1998 and 2000. This rapid expansion caused the store a lot of problems including taxes,increased number of employees,increased number of purchase orders causing...
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...1) What qualities are most needed to become a successful change agent? To become a successful change agent requires a critical trait – power, a transformative idea can come from below, however, change can only be made by a person with some sort of authority (expert, legitimate, reward, coercive, etc.). Change is compelled by managers who have a platform to advocate for a new direction and the ability to hire, promote, and reward those who embrace it. To become a successful change agent also requires essential transformational leadership qualities, these qualities are: The ability to have a clear vision, set clear goals and direction for yourself and those involved in the change effort. A successful change agent sees a future no one else does, and that vision would not let him rest until it is achieved. A successful change agent leads change because he believes his organization must get ahead of an approaching calamity in order to survive and win. He has the ability to set difficult but attainable goals for himself and his co-workers but used his optimism, enthusiasm and self-confidence to build positive expectations in others. He let people know how changes or innovations would help them succeed and incorporated this into their visions for future success. The ability to be persistent and courageous to bet his careers. A successful change agents is willing to take bold action—and accept the consequences. This requires commitment and he knows that leading change can...
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...Finance: Lawsons Case Study Gabriel Barcante November 6, 2013 2 Lawsons Case Study Company History • Nearly 5 years established in Riverdale • Competitive price targeted at low- to middle-income families • Varied clothes, footwear, and products for all ages • Seasonal business • $50,000 start-up loan at prime rate of 1.5% (good rate) o Pledge against all assets as guarantee Owners/Management Performance • Paul Mackay o Business Economics Degree o Entrepreneur o Quite involved in his business at the store o Financial ratios show how poorly his business has been managed ! Lacks efficiency ! Needs to focus on months that sell the most Industry (2002 numbers): Net Earnings R.O.E. Current Ratio Acid Test Age of Receivables Age of Inventory Net Worth/Total Assets 2.10% 31.60% 1.8:1 1.1:1 19.1 days 25.7 days 61.50% 3 Industry has relatively good numbers. Age of Receivables and Inventory are very good at under 30days and net worth/total assets are over 50%. Current ratio is close to ideal 2:1 and acid test is just over 1:1. This shows the industry is relatively healthy, even though it is a seasonal business. Future assumptions and comparisons will be based on these industry ratios. Potential Problems/Past Performance • Current ratio has trended downward since their opening in 2000. It is currently at 1.02:1, already below...
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...Louisa Lawson When you think of inspirational women, who comes to mind? Eleanor Roosevelt? Queen Victoria? Michelle Obama? Well, remember this name. Louisa Lawson. Louisa Lawson was born in 1848 and died in 1920, was born on 17 February 1848 near Mudgee, New South Wales. She was the second of twelve children of Henry Albury, and his wife Harriet. She was baptized an Anglican. Louisa went to school at Mudgee National School where she was asked to become student-teacher. Instead, she was kept home to help to care for her younger siblings, a common thing in Victorian times. On 7 July 1866, Louisa married a Norwegian man, Niels Hertzberg Larsen who called himself Peter. He had skills in many languages and jobs. They joined the Weddin Mountain gold rush and...
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