Blujay Aviation

Final Report

Dear Blujay Aviation

We would first like to thank you for giving us the opportunity and hiring our company as business consultants for BluJay Aviation. We will provide you with the best advice at a professional level, that will resolve your problems with the best interest of your company.

We have received the income statement that has showed us what the gift shop has been doing financially for the past three years. With the information that was provided to us we have come to a decision that it would not be in the best interest at this moment for BluJay Aviation to take over the gift shop.

First, after looking over the income statement we noticed there is an accounts payable for merchandise of the amount of $89,000. That will automatically put BluJay Aviation in the hole for the amount of $89,000 and immediately becomes a liability. We would also like to point out that all of your operating expenses from 2008 to 2010 have all gone up. Giving today’s economy your operating expenses will continue to grow and get larger as the years go on. Speaking about the economy how prices rise and fall all the time, and people go from spending money one minute to not wanting to spend a dime the next which would hurt your sales and gross profit and could start to decline. The income statement that was proved to us is an unaudited statement and not done by a certified auditing agency, so these numbers could be off by thousands.

Next, we would like to point out some of the good things that we have noticed from the income statement. That from 2008 to 2010 the gift shop’s sales are always increasing along with the cost of goods sold, and gross profit. The gift shops operating income went from in the negatives in 2008 to the positives in 2010. Also net income loss went from (43,900) in 2008 up to (1,750) in 2010 which shows improvement throughout the years. But like we mentioned before if the economy starts to slow down again and sales start to drop your...