Ivan V. Paulino
Embry Riddle Aeronautical University
Max Profits Consulting Firm
Dear Wren McKeemon & Brad Castanada
We here at Max Profits Consulting Firm are grateful for the opportunity to provide recommendations to your company, “BluJay Aviation”. We have been in the consulting business for over 20 years; we fully expect to meet your needs and concerns. We intend to provide unbiased and educated commendations to BluJay Aviation by assessing and providing your current health of the company and future acquisitions.
Gift Shop Our consultants recommend against investing in the gift shop. You and your partner do not seem very interested in capitalizing in the gift shop. We at Max Profits believe that client has to have the passion in any business venture in which our client wants to participate in. A quick snapshot of what we observed from HNK’s Income Statement, details that the sales have been accruing for the gift shop within the past three years. However the income statement shows that their expenses are too high for gift store to be lucrative. The gross profit margin for the last three years was, “2010: 0.45, 2009: …show more content…
By taking this course of action, BluJay can raise $148,000 to buy the helicopter but your company wouldn’t have enough to pay your bondholders for quite a while. Investors being issued common stocks could be an option however it will derive more provisions than dispensing bonds. The Stakeholders in BluJay will have voting rights and dividends paid out are not tax deductible. Allocating stocks will also drop earnings per share (EPS). Our final recommendation is that BluJay Aviation should wait a few more years until its cash flow increases and its financial reports reflect better operating ratios to finance the Raven