CORPORATE FINANCE Case 1: Flash Memory‚ Inc. Section B1 Group 1A Executive Summary As sales of Flash Memory Inc. (Flash) increases rapidly in the first few months of 2010‚ additional working capital is required to ensure smooth operations and maintain their current growth rate. However‚ Flash currently has almost reached its notes payable limit of 70% accounts receivables with its current commercial bank and thus‚ need to look for various alternative financing means to provide the required
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12 Flash INC. CASE ANALYSIS Comparative Financial Analysis Author Assuming the company does not invest in the new product line; prepare forecasted income statements and balance sheets at year-end 2010‚ 2011‚ and 2012. Based on these forecasts‚ estimate Flash’s required external financing: in this case all required external financing takes the form of additional notes payable from its commercial bank‚ for the same period. Using the assumptions given in the case‚ all elements of income statement
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Flash Memory‚ Inc. faces stiff competition in an industry that maintains focus on new development and is challenged with ‘short product life cycles’ (Pg.2). Their future will be predicated on how they invest their cash flows and generate new business. This process will involve generating new financing and developing renovated product lines. Flash Memory‚ Inc. specializes in the production of Solid State Drives (SSD) which makes up 80% of their revenue. The remaining 20% is comprised of high end/
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Introduction This case is primarily about deciding on the choice of a new project based on financing methods. Flash is a small firm focused on the computers and electronic chip segment. This is a segment with a very dynamic operation with constant need for innovation and research. This called for constant investment through the working capital for the firm. With immense competition‚ small product life and significant investment‚ this business offered only very low profit margins. The industry
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Flash Memory PSYCHOLOGY TERM PAPER Memory is the main faculty of retaining and recalling past experiences. A repressed memory‚ is one that is retained in the sub conscious mind‚ in which one is not aware of it but where it can still affect both conscious thoughts‚ memory‚ and behavior. When memory is distorted‚ the result can be referred to what has been called the "False Memory Syndrome"(Thomas Billing Publishing 1995) : a condition in which a person’s identity and interpersonal relationships
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Flash Memory‚ Inc. Investment in New Product Line University of Waterloo Prepared for Jim Gray October 11‚ 2012 TO: FROM: DATE: SUBJECT: Introduction The Board of Directors‚ Flash Memory Inc. The Finance Team October 11‚ 2012 Investment in New Product Line Flash Memory Inc. (herein referred to as “Flash” or the “firm”) is in the critical stage of planning for future operations and expansion. Competitive pressure‚ rapid market growth‚ continuous technological developments and high
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Flash Memory Inc. For the Flash Memory Inc. case you will turn in both a write-up of your analysis and a spreadsheet that contains any financials or calculations you performed. The formal write-up should contain an overview of how you tackled specific issues presented in the case‚ how you set up the spreadsheet to present you analysis‚ and a discussion of any assumptions you are making. To guide you through the case‚ below are a set of questions you will need to address. Structure your written
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TO: FROM: DATE: SUBJECT: Mr. Hathaway Browne‚ CFO of Flash Memory Inc. MP.JAW Consultants October 11‚ 2010 Analysis of the Investment Opportunity and Financing Options ! As your financial consultants‚ we have conducted a comprehensive analysis of Flash Memory Inc. (FMI)’s current business situation‚ its new potential investment opportunity‚ and financing options. Our recommendations are as follows: 1. Pursue the suggested new product line. 2. Seek additional funding through equity financing
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1. Background of Flash Memory. Inc Flash memory was founded in San Jose‚ California in the late 1990s. In 2010‚ there are six individuals held the top management positions‚ comprised the board of directors‚ and owned the entire equity in the firm.Flash specialized in the design and manufacture of solid state drives (SSDs)and memory modules which comprised the fastest growing segment in the overall memory industry. SSDS market is huge and intensely competitive which reflects in product offerings‚
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Flash memory Flash memory was founded in late 1990s. The small firm specialized in designing and manufacturing solid state drives and memory modules. Given the facts that products had short life cycles‚ and technologies changed frequently in the market‚ the competition was intensive in the industry and product profit margin was low. In order to stay ahead of competition‚ Flash memory needed to highly invest in R&D to create cutting-edge products so that customer’s wants and needs could be met.
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