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Case Study:
The Great Service Cleaning and Maintenance Company requires a capital infusion of $200,000. It is currently a closely held corporation with less than 50 shareholders. Although the shareholders are not all related to each other, they all know each other and they view the business as a family business. Please refer to the financial statements available here. The financial statements should be familiar to you because you performed a basic financial analysis of the company in Unit 1 of this course.
A number of alternatives are available to the company. It can:
In this paper, discuss the impact and implications of each alternative. It would be appropriate to include the topics and areas of discussion you covered in the case study in Unit 6 so long as it is applied to this specific case. Considering the size of the investment ($200,000) how does this impact the financial statements reviewed in Unit 1?
Superior papers will explain the following elements when responding to the assignment question:
2014CUT“CURRENT ASSETS`ashFreceivables3. 935, 4^]Inventory[Ither BIGGETE1 19.5^Total Current GEGET`3. 7ZE. SONYLONG TERM ASSETSNote ReceivableEquipment I Met of JEFradiation!Total long term BEGETS1 . 298, 5^TOTAL ASSETSLIABILITIES AND STOCKHOLDERS’ EQUITYCURRENT LIABILITIESACCOUNTS Payable2. 783. 1002. 805, 700Note payable ! current maturities !177.5.50)172.5.50)` ther accrued liabilities165, 3^1 1 4, BILLYTotal current liabilities3 . 125 , 950)LONG TERM LIABILITIESJotes payable !long term !LOME term accrued liabilities289. 5.5012 20,25^`tal long term liabilitiesFi^ ^}LYTOTAL LIABILITIESSTOCKHOLDERS” EQUITY”Common Stock.Retained Earnings.387.50^Total Stockholders Equity2 . 187.50^TOTAL LIABILITIES AND STOCKHOLDERS EQUITY5. 957. 8^
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