CASE ONE- Smith Carson -Fall 2018-Saved to my Mac Q- Search in Document Home Insert Design Layout References Mailings Review View Share ^ AaBbCcDdE asbCcOdEc AaB AaBbCcDdE Paste NormalNo Spacing Heng 1Heading 2 Styles Pane TLle SubtitleSubtle Emph. CASE ONE Be the Banker, Smith Carson Limited Smith Carson Limited, located in Ottawa, ON, is a thriving t-shirt manufacturer that is also involved in screen printing. It has a strong balance sheet with moderate debt, reflecting the conservative nature of its management. Total revenues are CAD 25 million. The company supplies two major Canadian retailers that make up about 60% of its annual turnover. remainder of its sales are spit between the export market (25%) and smaller independent retailers/single outlets (15%). The Smith Carson's CFO requested a meeting with your bank, which began with a discussion of the following 2 new business opportunities. 1. Smith Carson currently purchases a large volume of raw materials from the Hong Kong and Singapore. Smith Carson normally does its own manufacturing but it has now found a very reliable supplier in Singapore, Fabrics R Us Inc. Fabrics R Us has much cheaper labour costs and are able to produce a lower cost, high quality Tshirt, Smith Carson is interested in sourcing from Fabrics R Us on a trial basis. Following a recent business trip to HK, Smith Carson identified a company called Top Brands Corp in Bristol, which indicated that they are prepared to buy high quality shorts from Smith Carson. 2. As a result of these 2 opportunities, it is now Smith Carson's intention to sell Top Brands, the shirts manufactured by Fabrics R Us. Smith Carson still plans to take delivery of the shirts so that they can screen print designs on them before shipping to Top Brands. Sales contracts and purchase orders are close to being signed between Smith Carson and the two foreign companies. The basic terms of sale are that Fabrics R Us will supply on a prices basis of $1 per shirt CIF Toronto Port and Top Brands will purchase the shirts for $7 FOB Toronto port. Page 1 of 4 1038 words English (Canada) Focus- 155% CASE ONE- Smith Carson -Fall 2018-Saved to my Mac Q- Search in Document Home Insert Design Layout References Mailings Review View Share ^ AaBbCcDdE asbCcOdEc AaB AaBbCcDdE Paste NormalNo Spacing Heng 1Heading 2 Styles Pane TLle SubtitleSubtle Emph. CASE ONE Be the Banker, Smith Carson Limited Smith Carson Limited, located in Ottawa, ON, is a thriving t-shirt manufacturer that is also involved in screen printing. It has a strong balance sheet with moderate debt, reflecting the conservative nature of its management. Total revenues are CAD 25 million. The company supplies two major Canadian retailers that make up about 60% of its annual turnover. remainder of its sales are spit between the export market (25%) and smaller independent retailers/single outlets (15%). The Smith Carson's CFO requested a meeting with your bank, which began with a discussion of the following 2 new business opportunities. 1. Smith Carson currently purchases a large volume of raw materials from the Hong Kong and Singapore. Smith Carson normally does its own manufacturing but it has now found a very reliable supplier in Singapore, Fabrics R Us Inc. Fabrics R Us has much cheaper labour costs and are able to produce a lower cost, high quality Tshirt, Smith Carson is interested in sourcing from Fabrics R Us on a trial basis. Following a recent business trip to HK, Smith Carson identified a company called Top Brands Corp in Bristol, which indicated that they are prepared to buy high quality shorts from Smith Carson. 2. As a result of these 2 opportunities, it is now Smith Carson's intention to sell Top Brands, the shirts manufactured by Fabrics R Us. Smith Carson still plans to take delivery of the shirts so that they can screen print designs on them before shipping to Top Brands. Sales contracts and purchase orders are close to being signed between Smith Carson and the two foreign companies. The basic terms of sale are that Fabrics R Us will supply on a prices basis of $1 per shirt CIF Toronto Port and Top Brands will purchase the shirts for $7 FOB Toronto port. Page 1 of 4 1038 words English (Canada) Focus- 155%