FINA 4300- Identify at least 5 major company business/financial problems

For this assignment, put many of the learned finance principles, techniques, and observations together to recommend actions that HHG, Inc may take to correct their problems. In other words, what is required is a written presentation of a comprehensive business/financial analysis of HHG.

You are to be HHG, Inc.'s Management Consultant.

Use the attached excel spreadsheet tabs for information on the following:

. Balance Sheet and Income Statement review of HHG, Inc.
· Common Size Statements of same for HHG, Inc.
· Ratio Analysis of HHG, Inc. and comparison to its industry ratios data, and general good business ratios criteria.

Background of this fictitious company:

* HHG, Inc. is about 10 years old.

* It designs, produces and sells costume jewelry. Its office, plant, and warehouse are near Providence, R.I .where most of the costume jewelry industry used to be located.

* It sells through distributors only. There are 10 distributors with one representing 60% of its gross sales.

* The retail price per piece varies from $100 to $500. The distributors get 50% of that and HHG,

Please address the following:

1. Identify at least 5 major company business/financial problems
and what data/information you used to identify same.

2. What do you think were the causes of such problems?

3. What short-range steps do you feel should be taken to ameliorate the problems?

4. What longer-range strategies do you recommend to significantly improve the financial performance of HHG, Inc.?

General Guide:

Spend some time thinking about what HHG could do differently to build a stronger business. Think about things like inventory management, pricing, ways to reduce cost of goods sold, ways to increase sales, and ways to reduce liabilities.

Remember that the goal of finance in general is to increase profits to the owners (shareholders) of the company. This can be done by increasing cash in, or decreasing cash out. Building assets and increasing sales can increase cash in, and reducing liabilities or reducing cost of sales can decrease cash out. In your analysis, try to start at a high level, and then dive into each of these concepts in some detail by working through the information provided in the balance sheet and income statement.