Case Assignment 1- Chapter 4 Mini-Case

Burchetts Green had enjoyed the bank training course, but it was good Mr. Green was familiar with the HH story. Founded in 1990 , it to be starting his first real job in the corporate lending group. Earlier had rapidly built up a chain of discount stores selling materials for that morning the boss had handed him a set of financial statements for crafts and hobbies. However, last year a number of new store openThe Hobby Horse Company Inc. (HH). "Hobby Horse," she said, "has ings coinciding with a poor Christmas season had pushed the coma \$45 million loan from us due at the end of September, and it is likely pany into loss. Management had halted all new construction and to ask us to roll it over. The company seems to have run into some put 15 of its existing stores up for sale. rough weather recently, and I have asked Furze Platt to go down there Mr. Green decided to start with the 6-year summary of HH's this afternoon and see what is happening. It might do you good to go balance sheet and income statement (Table 4.10). Then he turned along with her. Before you go, take a look at these financial statements to examine in more detail the latest position (Tables 4.11 and 4.12 ). and see what you think the problems are. Here's a chance for you to What appear to be the problem areas in HH? Do the financial use some of that stuff they taught you in the training course." ratios suggest questions that Ms. Platt and Mr. Green need to address? TABLE 4.10 Financial highlights for The Hobby Horse Company Inc., year ending March 31 TABLE 4.11 Income statement for The Hobby Horse Company Inc., year ending March 31, 2019 (figures in \$ millions) TABLE 4.12 Consolidated balance sheet for The Hobby Horse Company Inc. (figures in \$ millions)