Premium Essay


In: Business and Management

Submitted By Nessabre
Words 275
Pages 2
Executive Summary Ugo Bizzarri must make a recommendation to the board of directors on how to obtain funding for the upcoming operating expenses. In addition the recommendation must be made quickly and effectively while resolving the issues of having a low current ratio and having high expenses. There have been projected financial statements created based off the previous years to obtain a clearer image of where the company will be in the next year. The alternatives discussed include borrowing money from the bank, investors, owners and not expanding the company at all this year. The recommendation was to not expand the company if it wasn’t a necessity and to obtain the funding from investors and the owners of the company. This will result in having more cash on hand and it will increase the current ratio while simultaneously keeping the interest expense lower. If there needs to be expansions throughout the company it is suggested to keep them at a minimum. In conclusion it would strengthen the current position of the company.

Problem Statement
Ugo Bizzarri, director of acquisitions for Timbercreek Investments Inc, must make a recommendation on how to continue financing the needs of the business. Bizarri must decide between obtaining a bank loan and obtaining contributed equities or investments.
Other Issues and Problems Bizarri must make the right recommendation because the board of directors will follow his lead. There is also a time constraint because he is preparing for an upcoming meeting. The company is incurring an annual net loss. There is a very high interest expense. There are not enough assets and the current ratio is well below the industry...

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