Case 1-1 Essay
Maria Hernandez & Associates In June 2001，Maria Hernandez found herself out of a job for the second time in six months. As she left the building that had housed her failed dot-com employer, carrying a small box of personal belongings, her mind was already embracing a plan that would have her start her own business. At least, in her own business she would control part of her own destiny instead of being subject to the decisions of others.
Hernandez was a graduate of the Massachusetts College of Art. After working three years for an advertising agency where she specialized in advertising layout. she used part of her savings to take a technical course in webpage design. Her first job after completing her training was with a …show more content…
Maria Hernandez & Associates opened for business on July 2, 2001. Although Maria was not an accountant, she took stock of her company's financial position as she began to seek her first contracts. The company had spent all but $12, 000 of the cash that had been put into the bank account, but it had some assets as well.
Maria was a little worried that the cash had gone so quickly, but she also had confidence in herself and her willingness to work hard.
In the first few days, Maria lined up two webpage design projects from local businesses. She spent part of each day working on the projects, and the remainder of her time was spent looking for new clients. By early August she had four other designers at work and a steady stream of new work coming in by way of referrals. She also felt far too busy to attend to any financial aspects of the business. When clients paid, the money went into the bank account. The associates were paid weekly, and she paid rent and other bills when they were received. In the ninth week of operations, Maria's father telephoned her to ask how things were going, and she could not answer the question with any confidence. It was time for an accounting, and the end of August would be a good time to do