Business Administration 3321K Study Guide - Final Guide: The Chairs, Income Statement, Costco
22 Mar 2019
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Plastics has not shown consistency in their ability to turn a profit. To answer this question, project the monthly income statement and balance sheet for the next year. Sku (stock keeping units) all these chairs are taking up space in our inventory and will likely lead to more problems: production problems, keep an inventory with all these different colors. Our company is growing really quickly and this is good and this is the problem we are trying to solve. We are growing we don"t need a loan we just need to find a new way to raise capital (good thing to show the bank) Maybe we partner with them to mitigate this risk. Equity has security because if you don"t make money you don"t have to pay anyone as opposed to a loan where if you default on a mortgage you will lose your assets.
