This case captures the money-flow and dealing-capital management problems usual for small, growing companies. In the finish of 2005, Bob and Maggie Brown have finished their third year of operating Horniman Horticulture, a $1-million-revenue woodsy-shrub grower in central Virginia. While going through flourishing demand and enhancing margins, the pair are undecided about their rapidly declining cash balance. The case highlights the main difference between income and accounting profits, along with the common unwanted effects of growth on income. The case supplies a forum for creating appreciation for that relevance of free income to business proprietors and managers, presenting financial ratio analysis, developing the idea of the money cycle and dealing-capital management, and motivating using financial models.
· Projected Financial Summary for Horniman Horticulture
· Pro Forma Statements 2006
· Income Statement
· Balance sheet
· Profitability Ratios
· Liquidity Ratios
· Free Cash Computations
1. Assesses financial performance of Horniman Horticulture, (HH thereafter)?