RSM415H1 Lecture Notes - Lecture 9: Commercial Bank, Income Tax, Retained Earnings
Document Summary
Overview: seasonal family business facing rapid growth, 20% us market share of ski boots. Customers: b2b, us dealers of ski products, international sales growing faster than domestic, mid-power. Sales: 7 sales steps: target: us skiers, contract/promote: 1 awards, 2 used in high profile competitions, 3 vegas ski show, 4 sales reps, benefit/present: 1 high quality, 2 unique design (patent rear-entry), 3 comfort ski boots, 4: close: sales rep see it, deliver: ship it/delivered to stores, report/refer: brand recognition, referral from happy clients, finance. 1987 . 2 million line of credit to meet seasonal cash needs at 3. 75% over prime = 3. 75+8=11. 75%: covers up to 70% of inventory costs and 80% of current ar. ,000 debt payment due nov 1986 to shareholders. Estimated 1987 international revenues = 30% total sales. Never paid dividends, do not intend to pay now = good choice: operations. Processes: 4 models of adult boots new models added, old ones dropped.
