Analyse case study financially Essay Example | Topics and Well Written Essays - 750 words

Analyse field of study study financially - Essay ExampleHowever he purchased the stock from his partner and became the sole owner. In 1994, when Harvey retired, it was agreed that his wife, Barbara pass on own the occupation and after her, it would go to Bruce. However, Bruce will be running the business and getting its proceeds and in turn will look after Barbaras medical expenses, profit for mortgage ($23,500) and pay her $500 every month.Due to the recent issues raised by Barbara that Bruce had not been remunerative her properly, Bruce has come up with a lead. The contract indicates that he will make a down earnings of $50,000 and then $500 thereafter for the remainder of Barbaras life. Barbara and family are confused, whether this was a fair offer or not. In order to identify a fair offer, it is essential to understand the reasons behind Bruce pushing this contract to be signed at the earliest.It is clear that the return on total assets has doubled in angiotensin-convertin g enzyme year, indicating that the assets are effectively generating profits for the bar. The return on honor has also doubled, indicating that the payoff on faithfulness is higher (Drury, 2005). This can be main reason behind Bruce wanting to own all of the Crowne Inn, as he will be the sole owner of the company and can claim the entire profits.It is unambiguous from the above ratios that the Crowne Inn has actively reduced the debt level over the past few years and the debts impart to lesser than 50% of the assets. The total equity in the company has also risen in the move three years. Based on these ratios, the total debt can be cleared within a expiration of another 3 years and the whole company will be owned by the equity shareholders. Hence Bruce is very particular proposition about buying the whole company, as he and Sharon only will have the claim to the business proceeds (Pendlebury and Groves, 2003).Barbara gives importance to her relationship with her son however sh e is also particular about the oral agreement that Bruce has to take care of her. It is