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    SureCut Shears case study

    What assumptions did Mr. Fischer make when he prepared the forecasts shown in case Exhibits 1 and 2? Were these assumptions reasonable? General Assumptions 1.The company has seasonality in sales This assumption is reasonable as the business has been shown to have different rates of sales in different months. Assumptions (Income Statement) 1.Sales for the […] More

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    SureCut Shears

    There were many compounding factors that caused SureCut Shears to be unable to pay its bank loan by March 31, 1996. When looking at the pro forma income statement as compared to the actual income statement we see the following inconsistencies, which are contributing to SureCut’s financial problems: AnticipatedActualDollar Loss Contributed Sales25,80022,9872,813 COGS (% to […] More