Finance

PROBLEM STATEMENT:

After assessing the situation of Caceres Semilla S.A. de C.v., what should the company do in order to present financial information accurately making its payment obligations on time?

OBJECTIVES:

1. To pay obligations on time.

2. To practice faithful representation in their financial information.

AREAS TO CONSIDER:

CACERES COMPANY

• Limited Liability Company

• Variable capital

• Specialized in selling corn seed

COMPANY’S FINANCING

• Long Term mortgage Loan

• Bank Loan

SALES FORECAST

• Average Collection Period is 1 month after sales

• Purchases are to be paid with a lag of 2 months

FINANCIAL STANDING

• Increase In Accounts Receivable, inventories, Fixed Assets

SWOT ANALYSIS:

SWOT

Opportunities (O)

• The company has a great chance of expanding their business.

• Competitors might not have high quality products specializing in corn seeds like the Caseres

Threats (T)

• Competitors in the business

• Unstable price of the product

• Taxes in products

• Unstable weather conditions

Strengths (S)

• Good relationship among customers and staff of the company

• Limited liability company

• Since the company is running in a limited liability condition. Basically, the company’s earnings are taxed only once. Which means the company can take advantage of the situation and try to expand their business in order to gain more profit.

• The company should continue to share a friendly approach in dealing to their customers. In this manner their customer loyalty will increase and they will not worry about their competitors anymore.

Weaknesses (W)

• Company only concentrates in production of corn seed

• Company is slow to adopt new products to sell

• Continue to concentrate in producing high quality corn products in this method they can assure that the products they produce are first class products that will surely pull off the demands of their customers and eventually will earn profit for the company.

• The company should continue to produce world class corn seed products. Try to pick up the phase in adopting new products to sell perhaps by take on new technologies so that production will be faster.

ALTERNATIVE COURSE OF ACTION:

1. The company should hire a non-family financial analyst.

Pros:

• The financial statements will be fairly represented.