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Learning Team Assignment: Xtreme Toys Case Study  

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Learning Team Assignment: Xtreme Toys Case Study Nathan Church Megan Leite-Ferraz David Oxley Sue Oxley Michael Shannon FIN 475 March 24, 2004 Xtreme Toys Case Study Imagine the excitement of the management team at Xtreme Toys at their recent board meeting when told about the company's increased sales statistics. However, joy soon turned to bewilderment when confronted by the company's shrinking cash flow situation. Convinced that the figures must have been misstated, the board members appointed a team from the finance accounting department to investigate. The following paper details the team's findings, including their recommendations on what actions the company should adopt to reduce its cash gap predicament. The Situation Xtreme Toys is a small manufacturing company in Southern California that has experienced rapid expansion in sales over the past year. The expanding sales have caused intense pressure for increased inventory production, combined with a receivables buildup that is now draining the company of its cash resources. With management focused on increasing...

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