Victoria's Milling Case

VICTORIAS MILLING COMPANY, INC. Point of View:Assumed in this vitrine person is the perspective of VICMICO?s Finance OfficerProblem:What be the contingent causes of VICMICO?s immediate payment flow enigma and how bottomland they be communicate?Case Context:This case requires an abstract of Victoria mill about Co.?s monetary dictations in parade to present a comprehensible explanation regarding the family?s debt position. This paper utilizes the image of Ratio compendium to realize the afore-mentioned problem. The case also examines issues of cash flow problem for VICMICO in light of a fundamental law of a work committee consisting of VICMICO?s stakeholders. Areas for Consideration:?VICMICO and its subsidiaries were precondition a moratorium of 90 days to dispose its debts. ?A statement released by VICMICO?s Board Chairman reported that 70- 80% of VICMICO?s problem was repayable to the crisis of the whole diligence. ?Massive importing and dwindling prices of net were observed. ?Data on milling industry or new(prenominal) related industries were not given. ?Given the bound of VICMICO?s trading operations and industries, jobs of a big number of employees are at stake. vigilance must also take into grade their disposition. Methodology1.Conduct trend summary in the alliance?s financial statements. The company inevitably to assess its performance over era to come up with an explanation about its current status. 2.Consider factors that may signifi tushtly equal the company?s performance. 3.Analyze the data gathered. employ Ratio Analysis, the company?s management must be able to stay out specific problems and issues to be handled. Analysis?The company is highly-leveraged due to high levels of liabilities. ?Income from operations decreased greatly from Php603, 000,000 to Php234, 000,000 in 1996. This can be attributed to raised cost and expenses crossways the period. ?The company?s performance is declining over time. This is suggested by decreases in most of the profi! tability, efficiency, and liquidness ratios computed. Current as well as long-term debt... If you involve to get a full essay, order it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay