FIN 3717 Chapter : Case 5 Horniman Horticulture
Document Summary
Horniman horticulture is a wholesale nursery business near lynchburg, va. Executive summary of the nursery, which is 40 acres of fields with 52 greenhouses, are bob and maggie brown bought for ,000 in 2002. Their sales are mainly to retail nurseries throughout the mid- They have seen an increase in business and the number of plants grown is becoming higher as well. At the end of 2005, they had experienced booming demand and improving margins but suddenly had a plummeting cash balance. Their receivable days were at over 50 days (more than twice the benchmark) and their payable days are at around 10. The other issue is that their inventory is plants and plants take 2-3 years to mature. Also, since their inventory is plants, severe weather can completely destroy their business. So the nursery relies on good weather and good growing conditions. This poses a major issue since the cash balance of the nursery is experiencing problems.
