Nuts n' Seeds has a required financial reporting deadline of 90 days after their fiscal year end.
Fantastic news! We've Found the answer you've been seeking!
Question:
Nuts n' Seeds has a required financial reporting deadline of 90 days after their fiscal year end. True or false, these financials were produced ahead of the client's submission deadline?
True
False
Transcribed Image Text:
Nuts n' Seeds Incorporated (NSI) is a producer of organic, packaged snack products. Their products include granola bars, nut and seed butters, and other legume-based packaged snacks, like nut and seed mixes. The company was founded by owner Jason Lee, who still runs the business at its original facility in Anytown, USA. Jason's background was in marketing; he worked as a brand manager at a much larger competitor for 5 years before leaving to create NSI approximately 8 years ago when he identified what he believed to be a great market opportunity. NSI is a relatively new client to your commercial bank, moving over about 18 months ago from a competitor after a referral from your wealth management division, with whom jason has a relationship. Jason is a marketing guru, but even he is the first to admit that his financial acumen is weak - though improving. Jason's outside net worth is approximately $1,600,000 - with some of it in home equity but most in non-registered marketable securities, held with your wealth management group. Jason has been considering hiring a part time CFO to help support growth and to optimize their capital structure. He's only 40 and expects to work in the business for at least another 20 years; he has big growth expectations over that time. In a recent meeting it was made clear that he has not done any succession planning. The snack food production industry in North America is dominated by several large players, with Pepsi-co chief among them. Smaller operators like NSI generally achieve success by carving out unique niches (like locally-sourced and/or organic). Jason has been successful in this, particularly around brand messaging given his background in marketing. NSI has a well-diversified customer- base, although Jason is presently in negotiations with Costco's procurement team; a large new customer like that would be a game-changer. The present transaction is an annual review with increase. NSI is looking to borrow an additional $500,000 that will support the acquisition of new packaging equipment. They have a $500,000 operating line already, plus a $200,000 reducing term facility that you advanced right before their fiscal year end. Industry The snack food production industry is in the mature stage of its lifecycle, with heavy levels of regulation. CAPÉX requirements are considered relatively high. Industry revenues are growing at an annualized rate of 1.4%; this is expected to continue over the next 5 years. Technological change is considered medium, with investment in innovation required to keep up with the changing industry landscape. Some key industry ratios are as follows: • Net margin: 3.8% • Gross margin: 33.1% • Debt service coverage: 1.5x • Total liabilities to equity: 1.9x Current ratio: 1.5x Funded debt to EBITDA: 3.7xFunded debt to EBITDA: 3.7x Nuts n' Seeds Incorporated (NSI) is a producer of organic, packaged snack products. Their products include granola bars, nut and seed butters, and other legume-based packaged snacks, like nut and seed mixes. The company was founded by owner Jason Lee, who still runs the business at its original facility in Anytown, USA. Jason's background was in marketing; he worked as a brand manager at a much larger competitor for 5 years before leaving to create NSI approximately 8 years ago when he identified what he believed to be a great market opportunity. NSI is a relatively new client to your commercial bank, moving over about 18 months ago from a competitor after a referral from your wealth management division, with whom jason has a relationship. Jason is a marketing guru, but even he is the first to admit that his financial acumen is weak - though improving. Jason's outside net worth is approximately $1,600,000 - with some of it in home equity but most in non-registered marketable securities, held with your wealth management group. Jason has been considering hiring a part time CFO to help support growth and to optimize their capital structure. He's only 40 and expects to work in the business for at least another 20 years; he has big growth expectations over that time. In a recent meeting it was made clear that he has not done any succession planning. The snack food production industry in North America is dominated by several large players, with Pepsi-co chief among them. Smaller operators like NSI generally achieve success by carving out unique niches (like locally-sourced and/or organic). Jason has been successful in this, particularly around brand messaging given his background in marketing. NSI has a well-diversified customer- base, although Jason is presently in negotiations with Costco's procurement team; a large new customer like that would be a game-changer. The present transaction is an annual review with increase. NSI is looking to borrow an additional $500,000 that will support the acquisition of new packaging equipment. They have a $500,000 operating line already, plus a $200,000 reducing term facility that you advanced right before their fiscal year end. Industry The snack food production industry is in the mature stage of its lifecycle, with heavy levels of regulation. CAPÉX requirements are considered relatively high. Industry revenues are growing at an annualized rate of 1.4%; this is expected to continue over the next 5 years. Technological change is considered medium, with investment in innovation required to keep up with the changing industry landscape. Some key industry ratios are as follows: • Net margin: 3.8% • Gross margin: 33.1% • Debt service coverage: 1.5x • Total liabilities to equity: 1.9x Current ratio: 1.5x Funded debt to EBITDA: 3.7xFunded debt to EBITDA: 3.7x
Expert Answer:
Related Book For
Differential Equations and Linear Algebra
ISBN: 978-0131860612
2nd edition
Authors: Jerry Farlow, James E. Hall, Jean Marie McDill, Beverly H. West
Posted Date:
Students also viewed these accounting questions
-
A client has prepared financial statements using a financial reporting framework generally accepted in another country. The statements are intended only to be used in that country. Describe the...
-
True or false a. Financial planning should attempt to minimize risk. b. The primary aim of financial planning is to obtain better forecasts of future cash flows and earnings. c. Financial planning is...
-
True / False Questions: If false, give a counterexample or a brief explanation? (a) A solution set of a homogeneous system of linear algebraic equations, given by Is a subspace of R4. True or false?...
-
Write a function named "count the" in C which counts the number of times a given word "the" appears in the string parameter. Test Data: Input: The string where the word the present more than once....
-
What are the key arguments surrounding the debate whether lawyers should be required to annually contribute pro bono services?
-
What is the real, or after-inflation, return from each of the asset classes listed in Table 12.4?
-
We see that 75 of the 264 people in the study allowed the pressure to reach its maximum level of \(300 \mathrm{mmHg}\), without ever saying that the pain was too much (MaxPressure=yes). Use this...
-
During the year ended 30 June 2016, Beautiful Bottles Pty Ltd incurred the following costs in connection with its production activities. Raw materials purchases Factory electricity Indirect labour...
-
dditional questions 1. Boris is a trader in fresh fruits. During June 2017, he reported sales of $120,000. His opening stock was $26,000 and purchases for the month was $114,000. Mark up is 50%. What...
-
Given two arrays each of length n, arr1, and arr2, in one operation, any two elements of an array can be swapped. This can occur any number of times. Find the maximum possible sum of i*(arr2[1]-...
-
How do multicellular organisms integrate sensory input and respond with precision to environmental cues, orchestrating adaptive physiological responses to preserve internal stability ?
-
In 2019, Forbes magazine listed Jeff Bezos, the founder of Amazon, as the richest person in the United States. His personal wealth was estimated to be $131 billion. Given that there were about 328...
-
Starbucks was founded in 1971 in Seattle by Gordon Bowker, Jerry Baldwin, and Ziv Siegl. By 1982, Starbucks had five retail stores and was selling high-quality whole bean and ground coffee products...
-
What are the major forms of household income? Contrast the wage and salary share to the profit share in terms of relative size. Distinguish between a durable consumer good and a nondurable consumer...
-
Stanley has been a prominent manufacturer of high-quality tools since 1843. Stanleys reputation has been a key strength and has contributed to its success throughout the years. Black & Decker has...
-
Pittiulak looked over the latest accident report and sighed to himself. One of his most junior workers, a house painter, had slipped off a ladder and broken his arm. Pittiulak felt terrible for him...
-
You work as a patient transport manager in a large London-based teaching hospital trust. Your role involves volunteering as a career development mentor in a scheme set up by the human resources...
-
Find the center of mass of a thin triangular plate bounded by the y-axis and the lines y = x and y = 2 - x if (x, y) = 6x + 3y + 3.
-
Explore the direction fields of the DEs y' = y2, y' = (y + l )2 , and y' = y2 + 1 . Describe their similarities and differences. Then answer the following questions: (a) Suppose each equation has...
-
Solve the 3 x 3 systems given in problem a - c. a. b. c. 0 0 101 010 2 001 021 9 123
-
Classical Equations The equations in Problems 1-2 are some of the most famous differential equations in physics.5 Use d 'Alembert's reduction of order method described in Problem 75 along with the...
-
The historical cost basis results in: a. initially recording assets at cost and adjusting when the current value changes. b. keeping activities of an entity separate and distinct from its owner. c....
-
Follow the same format as in Practice Brief Exercise 2. Determine the effect on assets, liabilities, and equity for the following three transactions. a. Performed accounting services for clients for...
-
Anya and Nick Ramon, local golf stars, opened the Chip-Shot Driving Range Ltd. on March 1, 2025, investing 25,000 of their cash savings in the business in exchange for ordinary shares. A caddy shack...
Study smarter with the SolutionInn App