Surecut-Final Edit
MANAJEMEN TRESURI
Case: SureCut Shears, Inc
Team Members:
Daryanti Suyam Eka Camelia Elizabeth Juvena Erlin Octavia Lizty Agisnia 1106147426 1106147653 1106147685 1106147741 1106113293
KS 112
MAGISTER MANAJEMEN UNIVERSITAS INDONESIA JAKARTA 2013
Manajemen Tresuri 1 Case: SureCut Shears, Inc I. Synopsis SureCut Shears manufactured a complete line of household scissors and industrial shears. Its quality lines were distributed through wholesalers to specialty, hardware, and department stores located throughout the country. Although competition was severe, particularly from overseas companies, SureCut Shears had made profits in every year since 1958. Sales and profits had grown fairly steadily, if not dramatically, throughout the period. The company had sufficient capital to cover its permanent requirements over the immediate future. The company in this position is actively pursued by bankers who want to lend the money to and via their bank deposit relationship. Hudson National Bank prospected SureCut for many years and successfully won their business. The company uses their line of credit to fund its peak season sales which occurs during the month July—December of each year for back to school, seasonal yard work, and holiday sales. In June 1995, Mr. Fisher, treasurer of SureCut Shears arranged a line of credit of $3.5 million with the. Much of these funds were used to fund the capital modernization program. Facing the declining sales, SureCut is facing difficulty in paying its short term loan obligations to Hudson National Bank. After thorough analysis, the need for short term fund requirements should not be used in capital expenses since the cash needed to repay the short term fund requirements comes from the sales of inventory which was the intention of the additional cash to stock up more inventories. In June 1995 Surecut Shears got a working capital loan amount of $3,5 million from Hudson National Bank to cover the seasonal sales peak, which would
Case: SureCut Shears, Inc
Team Members:
Daryanti Suyam Eka Camelia Elizabeth Juvena Erlin Octavia Lizty Agisnia 1106147426 1106147653 1106147685 1106147741 1106113293
KS 112
MAGISTER MANAJEMEN UNIVERSITAS INDONESIA JAKARTA 2013
Manajemen Tresuri 1 Case: SureCut Shears, Inc I. Synopsis SureCut Shears manufactured a complete line of household scissors and industrial shears. Its quality lines were distributed through wholesalers to specialty, hardware, and department stores located throughout the country. Although competition was severe, particularly from overseas companies, SureCut Shears had made profits in every year since 1958. Sales and profits had grown fairly steadily, if not dramatically, throughout the period. The company had sufficient capital to cover its permanent requirements over the immediate future. The company in this position is actively pursued by bankers who want to lend the money to and via their bank deposit relationship. Hudson National Bank prospected SureCut for many years and successfully won their business. The company uses their line of credit to fund its peak season sales which occurs during the month July—December of each year for back to school, seasonal yard work, and holiday sales. In June 1995, Mr. Fisher, treasurer of SureCut Shears arranged a line of credit of $3.5 million with the. Much of these funds were used to fund the capital modernization program. Facing the declining sales, SureCut is facing difficulty in paying its short term loan obligations to Hudson National Bank. After thorough analysis, the need for short term fund requirements should not be used in capital expenses since the cash needed to repay the short term fund requirements comes from the sales of inventory which was the intention of the additional cash to stock up more inventories. In June 1995 Surecut Shears got a working capital loan amount of $3,5 million from Hudson National Bank to cover the seasonal sales peak, which would