To write reply (discussion) for given answer -minimum 350 words. it

Flint Hills Company’s most recent financial statements showed dismal performance. There was a net loss of $10,000 and the Statement of Cash Flows showed a net cash decrease in all categories. The company president called all the managers together and asked them to do all they could to make sure the next quarter’s Statement of Cash Flows performance was better. 

Ed Gray, manager of the manufacturing division, sold off old manufacturing equipment. He also reclassified several workers to part time (30 hours per week) and hired additional temporary workers to take up the slack. This saved the company money, since part-time workers do not have the same insurance and other benefits as full-time workers. 

Mike Cane, financial manager, immediately suspended payments on all accounts except those on which interest would accrue. He also instituted aggressive collection procedures. 

1. Discuss Ed Gray’s actions. 
2. Discuss Mike Cane’s actions. 
3. Discuss the company president’s actions.


1)  I believe Ed Gray’s actions will end up costing the company more money. On paper this strategy will save the Flint Hills money. Selling off old manufacturing equipment is a great idea. I think switching several employees to part time and hiring temporary workers is a bad idea. While temporary workers could be paid less, they will take time and money to train and find. With an increase in new workers, mistakes will follow. Work place accidents and damaged equipment are likely to come with an increase of temporary workers. Insurance costs for Flint Hills will rise. Suddenly switching several full time employees to part time will dramatically change the work place environment. Many employees will most likely leave the company, which will lead to an increase in even more temporary works. The sudden switch in work place environment will lead to lower morale and could lead to decreased productivity. There would also be a potential loss of an employee retention tax break. The part time employees leaving the company could be part of an employee retention tax break. Losing this tax break will mean that income taxes for the company will increase.

2) I believe that Mike Cane’s actions are a bit drastic and will lead to hurting Flint Hills’ reputation with vendors. When the bills become past due vendors will be calling in for payment. The vendors were expected to be paid in a certain amount of time. The vendors will not take a hold on payment very well. Many of the accounts will be put on hold which will slow productivity of Flint Hills. The company will also have a harder time gaining credit terms with new vendors. With the company’s bad reputation, they will most likely be forced on COD terms. This will severely limit the company’s ability operate and plan big purchases. I think a better move would be for Mike Cane to renegotiate the debt and try to get some leeway on payment terms with vendors.

3) I think the Flint Hill’s president also handled this situation incorrectly. There was no real direction in the president’s statement. The statement came down to do whatever you need to bring down costs. I think a better move would have been to have a follow up meeting in which the other managers had time to think of ideas to save money. The mangers went off on the their own and did what they could, without thinking in the long term and how their actions would affect other departments. The was no plan implemented. While the short terms problems may be resolved, the long term damage could potentially be extensive.

Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

We value our customers and so we ensure that what we do is 100% original..
With us you are guaranteed of quality work done by our qualified experts.Your information and everything that you do with us is kept completely confidential.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

The Product ordered is guaranteed to be original. Orders are checked by the most advanced anti-plagiarism software in the market to assure that the Product is 100% original. The Company has a zero tolerance policy for plagiarism.

Read more

Free-revision policy

The Free Revision policy is a courtesy service that the Company provides to help ensure Customer’s total satisfaction with the completed Order. To receive free revision the Company requires that the Customer provide the request within fourteen (14) days from the first completion date and within a period of thirty (30) days for dissertations.

Read more

Privacy policy

The Company is committed to protect the privacy of the Customer and it will never resell or share any of Customer’s personal information, including credit card data, with any third party. All the online transactions are processed through the secure and reliable online payment systems.

Read more

Fair-cooperation guarantee

By placing an order with us, you agree to the service we provide. We will endear to do all that it takes to deliver a comprehensive paper as per your requirements. We also count on your cooperation to ensure that we deliver on this mandate.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages