Guillermo Recoomendation

Guillermo line of descent Recommendation

University of Phoenix

Class Accounting 571

Group ACC/571MBA10

Instructor: Mario Ducret

August 8, 2010

Work Shop Six

Guillermo Furniture Store Recommendation

For this assignment I was instructed to review the Guillermo Furniture Store scenario and analysis the alternatives and pass on recommendation of pecuniary decision. I go forth archetypal begin with a background of Guillermo followed by their monetary position. I will then discuss the recommendation of pecuniary decision, justification for the recommendation, and explain how I created the pro forma (pro forma attached).

Background:

Guillermo Furniture Store was created by Guillermo Navallez in Mexico, and up until recently was able to shake off an garish lend force. He had also patented a process for rouse retardant coating his furniture. However with being in an inexpensive housing market, traffic free roads, beautiful scenery, and the opening of an world(prenominal) airport more people have moved to his theatre driving up labor cost and bring in competition.

Financial Position:

With the events that have occurred the financial position of Guillermo has degraded especially in the field of view of debt repayment.



In the attempt to combat this problem Guillermo needs to make effective decisions and take proper steps for forecasting the contend of hiss product. Before he begins his gross revenue forecast he needed to decide upon the following option.

1. Should he update his procedure with a new computer controlled laser lathe

2. Should he become a sales representative for a new company from Norway wanting to break into the market

3. Should he set off on his coating process

Alternatives and recommendation of financial decision:

I analyzed Guillermos alternatives by first finding the return on investment that Guillermo would make for the both alternatives which were namely the hi-tech and broker options. During the analysis it became evident with the depreciation figures that additional assets such as...

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