Week 2

Running head: Guillermo Furniture Store

Guillermo Furniture Scenario

University of Phoenix

CERTIFICATE OF ORIGINALITY: I certify that the attached paper is my original work. I affirm that I have not submitted any portion of this paper to any previous course, and neither has anyone else. I confirm that I have cited all sources from which I used language, ideas, and information, whether quoted verbatim or paraphrased. Any assistance I received while producing this paper has been acknowledged in the References section. I have obtained written permission from the copyright holder for any trademarked material, logos, images from the Internet, or other sources. I further agree that my name typed on the line below is intended to have, and shall have, the same validity as my handwritten signature.

Student's signature (name typed here is equivalent to a signature):  Tim Esteban__________   ___

      Guillermo Furniture Store is a company that specializing in the manufacturing of furniture in Mexico.  Guillermo Navallez owns this store and he is very happy with the location and situation. With this location Guillermo is able to take full advantage of cheap rent, labor, and a great weather conditions.   There was a very long period of time that Guillermo Furniture Store had only a few competitors. Due to this, Mr. Navallez would be able to mark his products up and give him a much higher profit.  But now there a couple of competitors in the mix that become a huge threat for Guillermo Furniture and certain actions must be taken so that there is not any type of negative financial impact.

      Now that the basic situation is understood Mr. Guillermo needs to develop financial/accounting plans and forecasts in order to realize what investments need to be made for the company. Budgets and performance plans will be so important to the success of the company. This will allow the company to determine the correct amount of cash flow that can be expected and the...