Our Minor Project puts you in the shoes of the finance manager of medium-sized manufacturing company in the Midwest section of the United States. The company produces premium custom-made furniture for high-end homes.
As a result of an accelerating housing market, the company has generated record revenue and it is having difficulties fulfilling all the orders received. The company has no debt. In fact, it has an unused $6,000,000 line of credit available to it and it also has $20,000,000 in cash. Management must decide what to do with the cash that is currently in the company’s checking account.
Options considered:
Invest the money in financial assets. If so, a decision must be made about the type of investments that are most appropriate for the company.
Invest the money in expanding the production capacity of the business
Return the money to the owners as distributions (dividends)
Keep the money in the company’s checking account, as times are uncertain and the pandemic has not yet resolved
Management is keenly aware of the low interest rates currently prevailing in the marketplace.
In a 3-5 page essay, analyze the options above and make a decision as to what to do with the company’s cash. Discuss each option and then communicate and justify your decision. Explain your decision-making process.
A minimum of 3 sources are required.
Last Completed Projects
| topic title | academic level | Writer | delivered |
|---|