This website uses cookies to ensure you have the best experience. Learn more

Guillermo Analysis

700 words - 3 pages

Guillermo's Furniture Store
University of Phoenix
Corporate Finance
FIN 571


Guillermo's Furniture Store
Guillermo’s Furniture Store produced handmade furniture in an area of Mexico in which the raw materials for the furniture was plentiful and the labor to produce the furniture was low. In the beginning, the area in which Guillermo manufactured the handmade furniture was still underdeveloped and allowed Guillermo to make a considerable profit selling the furniture. Year’s later, new business trends arrived in the area of Guillermo’s manufacturing plant that changed the way Guillermo needed to business as Guillermo’s profits began to decline. In an effort to remain in ...view middle of the document...

Before a financial decision could be made, Guillermo would have to review the store’s financial statements to know the kinds of decisions that can be made to remain in business. The financial statements consist of balance sheets, income statements, and cash flow statements. A company’s financial statements when used effectively, allow companies, investors, and even competitors to make financial decisions.
Balance sheets are a useful tool when making financial decisions about a company. “A balance sheet provides detailed information about a company’s assets, liabilities and shareholders’ equity.” (“Beginner’s guide to financial statements“, 2007, para. 6) A company’s assets are the items a company owns. A company’s liabilities are the money a company has as debt. The shareholders equity is considered the difference from a company’s assets and liabilities.
Income statements give a visual statement of the amount of money a company has made or lost within a certain time. Income statements will show the money made through direct sales and the amount of money spent on items to build the products for sale. The...

Other Essays Like Guillermo Analysis

Guillermo Furniture Store Essay

764 words - 4 pages performance reports in his decision-making process. How ethnics principals might influence his accounting decisions and what accounting information on Guillermo decisions. Analysis of Different Alternatives for Company How could Guillermo use budgets and performance reports in his decision-making process Budgets and performance reposts can be used in several ways to help Guillermo Navallez with making professional decision. According to

Guillermo Furniture Flex Budget Essay

1017 words - 5 pages Guillermo Furniture Store Analysis Guillermo Furniture Store Analysis Many risks are involved when forecasting and preparing an organizational budget. Guillermo Navallez, proprietor of The Guillermo Furniture Store, is aware that to compete with the new and larger furniture retailers, he will have to make some changes to the way he does business. This will involve readjusting his current and future budget. The following will discuss the

Guillermo Furniture Store Scenario

1028 words - 5 pages Accounting-MMB/1009 | Guillermo Furniture Store Scenario | University of Phoenix | | Malaika C. Williams | 8/18/2010 | | Abstract This document reviews the Guillermo Furniture Store Scenario where the author discusses how Guillermo use budges and performance reports in his decision making process, how ethics might influence his accounting decisions, and what accounting information is most relevant for Guillermo to

Guillermo Flex Budget

715 words - 3 pages decide what effect they will have on his revenue. Finally, Guillermo will want to consider the risk associated with the change in product mix that he is considering. Offering different products, at different price levels can have a beneficial or adverse effect on his sales revenue. He will want to consider this when building his budget. Analysis of Ethical Considerations in Budget Preparations As Guillermo prepares his budget, he must

Guillermo

650 words - 3 pages Guillermo Furniture Store Concepts Paper 1 Guillermo Furniture Store Concepts Paper 2 Introduction In the world of business, we have many financial concepts and principles that help and allow business managers to make financial decisions that give them the greatest advantage in the market. The Guillermo

The Guillermo Furniture Store Scenerio

778 words - 4 pages ). Also financial analysis can expose such areas as liquidity, asset turnover, coverage ratios, and profitability information essential to business decisions. The total value of the organization could increase immensely by making the needed changes. Guillermo will need to make the decision based on his long term goals as well as determine how much control he would like over the company. Ultimately, if he will be in this business for long term, the

The Guillermo Furniture Store Scenario

2403 words - 10 pages their leadership into the industry and strategic plan for the new challenges? The following are some of the solutions for Guillermo’s Furniture Store in order of importance, based on previous classes and corporate finance analysis, the most important step for Guillermo’s Furniture Store will be the partnership with the company in Norway, the next step will be the new technology and the last step will be the patent process; we recommend these

Guillermo Furniture Store Flex Budget

847 words - 4 pages Guillermo Furniture Store Flex Budget Guillermo Navallez is a furniture maker based in Sonora, Mexico. His once thriving business is suffering from decreased profits caused by increased competition and the introduction of new technology. Therefore, Team D was consulted for the purposes of designing a flex budget. When constructing and evaluating a flex budget, it is important to identify favorable and unfavorable variances, consider the

Guillermo Furniture

742 words - 3 pages Guillermo Navallez is a resident of Sonar, Mexico and owns and operates a successful furniture manufacturing company. Guillermo enjoyed much success until the 1990’s when competitors began to enter the market and take business away from him. After conducting his own research of the problem, Guillermo determined he had three alternatives: apply the same high-tech methods as his competitor, become a representative for another manufacturer, or

Guillermo Scenario

516 words - 3 pages Guillermo’s Furniture Store Scenario FIN571 Guillermo’s Furniture Store Scenario Guillermo Navallez operates a furniture manufacturing business in Sonora, Mexico. Sonora is known as a beautiful vacation spot in Mexico. Guillermo furniture produces a wide variety of tables, and chairs hand crafted. The area of Sonora offers a good supply of timber to produce Guillermo’s products (University of Phoenix, n.d.). In the late 1990s the

Guillermo Furniture Store Scenario

854 words - 4 pages Running head: GUILLERMO FURNITURE STORE SCENARIO Guillermo Furniture Store University of Phoenix ACC/561-Accounting February 15, 2010 Guillermo Navallez is a successful custom furniture manufacturer in Sonora, Mexico. He is now faced with the decision of which direction to take his business, after a new international competitor entered the market and one of the largest furniture retailers opened their business in the community

Related Papers

Guillermo Furniture Analysis

1652 words - 7 pages . Alternatives The Guillermo Furniture Store simulation poses future success of the company may be in jeopardy unless it considers an Analysis of Different Alternatives. Guillermo Navallez must scrutinize the available options to recover the quality of his business practices. Analysis of Different Alternatives is a synopsis of how decisions can be made to implement sound business practices that have proven to extend the financial state of a

Guillermo Furniture Store Analysis

1594 words - 7 pages uillermo Furniture Store Analysis Week one individual paper was centered on Guillermo Furniture Store location, the production of work and the company finance. Week three individual paper will state three alternative measures for Guillermo Furniture Store working capital policy by weighting the average cost of capital, and by implementing multiple valuation techniques toward reducing the business risk. Business within Guillermo Furniture

Cost Analysis And Control System: Guillermo Furniture Store

1695 words - 7 pages Cost Analysis and Control System: Guillermo Furniture Store Accounting/ACC561 October 04, 2010 Cost Analysis and Control System: Guillermo Furniture Store Guillermo Navallez (Navallez) has several important decisions to make regarding the future of Guillermo Furniture Store (GFS). Computations of return on investment, residual income, economic value-added data, and break-even analysis provide insight for decision-making and

Guillermo Furnature Store Essay

754 words - 4 pages . The following will provide an analysis of Guillermo’s alternatives along with a financial recommendation to aid Guillermo in the next five years. Alternatives The first alternative that Guillermo has under consideration is to follow the business market trend of implementing a high-tech solution to increase production capacity and reduce costs. This alternative would require substantial financing for the advanced computer equipment