Guillermo Furniture Store Evaluation
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Decision Making – Guillermo Furniture Store Evaluation
Michael A. Nealy
ACC561 / Accounting
10/4/10
Professor Monique Smalling
Guillermo Furniture Store is a small company that is located near a resort in Mexico. Guillermo is independently owned by Guillermo Navallez. There are several major financial decisions that are facing Guillermo. These decisions can affect how Guillermo competes in the industry as well maintains its current business. Guillermo could start to evaluate and monitor his financial reports in an effort to understand his business even better. One way that Guillermo can get a better understanding is by using budgets and performance reports. This will allow him to see customer-buying trends so he can better prepare for the rise and decline in his business. As a result of evaluating the data he will be able to determine if he should adjust his manufacturing process, invest in a high tech solution or if he should partner with another company or sub-out part of his production. The reports will allow him to plan for changes and manipulate his numbers without actually affecting his bottom line.
If Guillermo wants to continue building his business, he is going to have to make wise decisions. He is going to need to focus on budgets and performance reports. As well he is going to have to implement ethical standards that will be new to the company. If he focuses on the financials, and determines that the budgets and other reports have incomplete or incorrect data in them, it could be unfavorable to the health and well being of the company. If the reports support Guillermo investing in a high tech solution because of a higher profit margin or greater revenue and reduced production costs, he would lean toward this choice. On the contrary, if the reports failed to support a high tech solution, an investment in that area would cause the business to dramatically decline, because of the added...
Michael A. Nealy
ACC561 / Accounting
10/4/10
Professor Monique Smalling
Guillermo Furniture Store is a small company that is located near a resort in Mexico. Guillermo is independently owned by Guillermo Navallez. There are several major financial decisions that are facing Guillermo. These decisions can affect how Guillermo competes in the industry as well maintains its current business. Guillermo could start to evaluate and monitor his financial reports in an effort to understand his business even better. One way that Guillermo can get a better understanding is by using budgets and performance reports. This will allow him to see customer-buying trends so he can better prepare for the rise and decline in his business. As a result of evaluating the data he will be able to determine if he should adjust his manufacturing process, invest in a high tech solution or if he should partner with another company or sub-out part of his production. The reports will allow him to plan for changes and manipulate his numbers without actually affecting his bottom line.
If Guillermo wants to continue building his business, he is going to have to make wise decisions. He is going to need to focus on budgets and performance reports. As well he is going to have to implement ethical standards that will be new to the company. If he focuses on the financials, and determines that the budgets and other reports have incomplete or incorrect data in them, it could be unfavorable to the health and well being of the company. If the reports support Guillermo investing in a high tech solution because of a higher profit margin or greater revenue and reduced production costs, he would lean toward this choice. On the contrary, if the reports failed to support a high tech solution, an investment in that area would cause the business to dramatically decline, because of the added...