M3A1 Essay Example | Topics and Well Written Essays - 750 words

M3A1 - Essay Example This implies that the firm’s current assets exceed its current liabilities. The current ratio and quick acid ratio of the company after the 2nd quarter of 2000 were 5.92 and 3.29. Both ratios are outstanding due to the fact that they exceed the 1.0 threshold (Garrison & Noreen, 2003). Honest Tea is in a good position to pay off its short term debt. During 1999 the firm was able to turn its inventory 2.50 times during the year. The debt ratio and debt to equity ratio of the company demonstrate that the firm has not incurred in long term financing options. Case study analysis questions: 1) Does the Tea market appear to be attractive as of the year 2000? Explain by referencing relevant metrics and information. The Tea market appears to be attractive for the year 2000. Tea is one of the fastest growing drinks in the United States due to its unique attributes. The competition in the tea market is not as severe as the competition in other segments of the drink industry such as in th e carbonated soda sector in which Coca Cola and Pepsi dominate. As of 1999 there were 2,595,500 gallons of tea consumed by the American public or 9.5 gallons per capita. 2) How is Honest Tea doing financially and otherwise? Discuss by referencing relevant metrics and other information. ... Despite the negative income of the company during its first few years of operations the company has done a good job of maintaining liquidity for the firm. The current ratio and quick ratio of the company demonstrate that the company has the ability to pay off its short term debt. The company has done a good job so far of growing its market. The reason that the company has not reached profitability yet is due to the fact that the company does not have sufficient sales to breakeven. 3) What does Honest Tea need to do about its financing to be successful in the future? Discuss. To be successful in the future Honest Tea needs to raise sufficient capital to expand its operations beyond the breakeven point. The firm has to invest money wisely in its marketing initiatives to expand the demand for its product. The company needs to obtain sufficient capital to purchase all the raw materials necessary to produce the projected sales of the company and to purchase the machinery and equipment nee ded for the expansion plan of the company. 4) Who has the company approached for financing in the past and were they the "right" investors? Explain. In the past the firm approached its customers to become the investors of the company. The decision to involve customers as investors was not very wise because a lot of them did not have financial knowledge which made it hard for the administration of the company to explain the financial results to them. Also the amount of money the firm obtained using this strategy was not sufficient. 5) What amount of financing appears to be needed to support the future sales projections of $9,000,000 in 2001 and $16,900,000 in 2002? Explain. Based on the fact that the cost of goods sold of the company represented

Agricultural Pollution Essay Example | Topics and Well Written Essays - 750 words

Agricultural Pollution - Essay Example Heedless to the consequences of the over production and sole dedication to the corn production, the ground has been deprived of the nutrients it should have to nurture other plants, the water has been polluted with the many chemical dosing of pesticides and fertilizers for corn production, and production of toxic wastes as by-products of corn production and manufacture. Also, over eating of corn for steers, calves and other animals are causing health problems such as mad cow disease thereby affecting human consumers of these meats (Codesmity,2007). Corn derived food products such as corn sweeteners and syrups are causing obesity to the human population. Overwhelming production of corn results to environmental and agricultural pollution and general health degradation for both humans and animals. There are many corn derived products that dominates the market today. Products with corn ingredients such as corn starch, corn oil, lecithin, corn flour, citric acid, glycirides, Chicken nugge ts, margarine, salad dressing, cosmetics, toothpaste, mustard, corn syrup, sweeteners, linoleum, fiberglass and many more are used in the daily activities of man (Collins, D., 2006). USA has wide and dedicated farmlands for corns alone. Farms found such as in Iowa, where around 2 million farms are found are said to produce around 2 bushels of corn yield per acre. Hybrid corns are even developed and promoted which multiplied production to around 200 bushels per acre. Further, the government issued farm bills that subsidized corn farms has further encouraged more American farmers to produce corns alone forgetting all the other crops (Pollan, Michael, 2006, p 32). Corn manufacturers have also widened their research and development to process corn into various products, thus, there are many produced products in the market that includes corn as main ingredient. It is no harm to plant and manufacture corn as indeed there are many products that can be derived from the production of corn. H owever, with the intensified dedication of farmlands to the production of corn has made the balance of nature become skewed. Overwhelming the lands with one crop has degraded the soil due to the lack of nutrients that the single crop production has caused. By nature, corn is a greedy plant as described by both agriculturists and farmers. Planting corns requires intensive need for nitrogen fertilizers as compared with other crops. In fact, an island size â€Å"dead zone† has been created in the Mexico Gulf due to the accumulated nitrogen run-off from the corn fields into the water. It also requires more pesticides to drive out pests and have them grow to their desired output (Penguin Group USA, 2013). Due to this chemical application, air and water are inclined to be polluted with chemicals from fertilizers and pesticides. Water is then contaminated affecting nearby areas relying on the body of water for their daily use. In addition, massive corn production has forced many man ufacturers to include corn ingredients in almost all products thereby making these goods cheaper against the others. Thus, these food products, mostly composed of sweeteners are more easily consumed by the public causing obesity to almost majority of the population. Ergo, the massive and intensified corn production due to the single crop production of corn in many parts of the USA, agricultural pollution and soil degradation is indeed inevitable affecting the general health. There is no harm in corn production, but too much dedication of single handed crop production of this plant is not healthy. Soil needs to be planted with various crops in order to gain diverse nutrients necessary for the soil condition. Waters need to be free from pollutants derived from fertilizers