Case study: Quanlity Funiture Company.

Introduction The Quality Furniture Company was a high-quality home furniture manufacturer. Its headquarters was in Scranton and distribution depends on the department stores, independent home furnishing retailers and regional chains. The Lloyd's, Inc and the Emporium department store were two of them. The Lloyd's, Inc had been a customer of Quality Furniture for over 30 years. It always kept the good relationship and credit with Quality Furniture Company. The Lloyd's Inc sold quality home furnishings from …

…profit, the profit was in the very low level. And from the case statement, we can know the situation would become more difficult on the Jan. Feb. and March, 2002. So Quality Furniture Company need pay more attention to the inventory turnover and current ratio. To the different company, Quality Furniture Company should apply the different solution. In the result, it is better solution to hold to the limit established, but do not press for collection.