AFM373 Lecture Notes - Lecture 3: Cash Conversion Cycle, Asset Turnover, Life Insurance

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM373
• Professor: Alan Douglas

Document Summary

[in this case]: nelson jones, sole owner and president of company. Where is the business: growth (expect more sales in 2007) Stakeholders: jim lyons, rachel montrose, southern bank & trust, nelson jones, dave. : sells electrical parts and tools to general contractors and electricians, products purchased from 100 different suppliers: founded in 1999, in 2003, jones bought out verden for 250,000 - verden pays. /mth + 8% interest per year: business follows seasons of customers" businesses (high during spring and summer) What his key success factors (i. e. , what does he need to do well, to succeed?). Market was competitive and large, high competition from national distributors, home centers, other small supply houses. Anticipate increase in sales in 2007 need for more funding. Need to borrow more from metropolitan bank to 250,000 in 2006, maximum that bank lent out was 250,000 jones used trade credit from their suppliers.