- 18 -
Golden and Weaver took an inventory of motor homes, vans,
and cars, and also inspected some of Northwest's records.
Looking for sources of collection for the amounts that Northwest
owed petitioner, Golden reviewed the assets at the dealership,
and he concluded that Northwest was insolvent to the extent of
roughly $2 million. Golden's conclusion was contrary to
compilation statements given to petitioner by Northwest the year
before. Golden and Weaver boxed up as many of Northwest's
records as they could and shipped them back to Nacogdoches,
Texas, for review. After reviewing Northwest's records in
Nacogdoches, Golden concluded that cash was missing from
Northwest, but he was unable to determine where the cash might
be. Petitioner did investigate the possibility that Nicholson
had pocketed the cash, but by this time Nicholson had few if any
assets available for collection.
Axley & Rode analyzed Northwest's assets and liabilities to
determine whether Northwest's receivables were collectible.
After a review of Northwest's records, Golden advised petitioner
that Northwest could not generate the cash-flow needed to pay the
amount owed to petitioner. Northwest's receivables were pledged
to the finance company, new inventory of coaches not manufactured
by petitioner ("X" brand coaches) was floorplanned by Chrysler
First, and the value of the used coaches was inflated. The total
assets on the books were $1,096,491 and liabilities were $3.5
Page: Previous 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 NextLast modified: May 25, 2011