ABC Company - Biographical Information ABC Company is a family owned business which Jonathan started 15 years ago, issuing 900 shares of the 1000 authorized, at a par value of $100 a share. ABC Company is a small manufacturer which produces ladies’ sports apparel. The business has employed as many as 30 people; however, sales have slipped the last three years, according to Jonathan, due to competition in the marketplace, and the economy. Currently, the business employs nine people, including Jonathan and his son, Junior, who is the Plant Manager. The business appears to be on pace to produce about the same as last year, $800,000, which is down from their high of about $2,500,000 just four years ago. Jonathan’s family is personally in financial trouble, because Jonathan and Junior aren’t taking home the same salary they used to. Three years ago, each of them earned $200K per year. At the time of our arrival, Jonathan hadn’t taken any pay for a month, and Junior is being paid at the rate of $50K per year. Jonathan has a few health issues, and wants Junior to take over the business, but can’t afford to hire a new Plant Manager. Morale throughout the company is low, and productivity is suffering. ABC Company sold 12,307 units last year. 85% of the sales were in workout leggings. Remaining sales were from one order of sweatshirts by their oldest customer. They are behind in payables and past due receivables are at an all time high. Their customer base consists mainly of three local retailers who love working with Jonathan and Junior and have been customers for years. Vendors are getting tired of being paid late, and their primary fabric vendor has just recently put them on COD. There is a loan on the books from Junior’s mother-in-law for $30,000, with a pay plan of $750 a month, but the Company has missed the last three payments and Junior and his wife are becoming increasingly upset about the embarrassment and problems this is causing in their family life.
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