Strategic Financial Plan
Team B
FIN/486
September 30th, 2014
Daniel Konzen Strategic Financial Plan
The Huffman Trucking Corps strategic planning is the reason why they have been in business since 1936. The financial portion of the strategic plan is crucial for the company’s continued growth and existence. The statements will be from the last 3 years consisting of income statements, balance sheets, and cash flow statements. All three statements will explain major assumptions and identifies areas of risk. The risk that would be identified are: A review of cash flow statements and a recommendation of implementing new short-term working capital strategies on long-term cash flow, an explanation of corporate risk mitigation techniques …show more content…
Short-term financial planning and effective budgeting enhances the realization of the firm’s long-term strategic objectives. Constructing out planned anticipated actions for the firm over a period are essential to check missteps even though such a plan may be subject to change as new information arises or need to address sudden operating uncertainty. Long-term plan is an integral part of the firm strategic goal, and it takes into account the capital structure of the firm, short-term plan, and sources of financing. In addressing the new short-term working capital strategies with respect to long-term cash flow, we are to consider the dynamics between the incomes generating capacity of the new initiatives. The resources purchasing activities of Huffman Corporation with respect to the new business strategic initiatives should be consider as well. The CEO memo indicated a just in time (JIT) delivery business strategy, a satellite warehouse, and $10 million space rental cost as new spending areas. These new spending areas will require additional financing. Considering the Pro-forma statement, asset will increase by $31,485.00 compared to 2011 total assets. An increase in an asset such as a permanent asset means purchases has been made that will require payment on a loan. Therefore, Huffman Corporation …show more content…
Product or service risk refers to the risk a company encounters simply because of the product or service they offer. The supply and demand and competition are what affect the operational risk for what product or service the company is striving to profit from. A risk management technique is form based upon the company’s capital structure as well as the strategic financial planning. A company relies upon certain amounts of debt to fund their operations, but a company must also remember to properly balance their debt because the higher the debt, the higher the risk.
In conclusion the Huffman Trucking Corp financial strategic planning is the actual reason why they are still in business. The statements provided have shown “that Huffman Trucking can continue to increase long term cash flows is by diversifying investments; Rather than relying mainly on cash contributions, more cash flow could gradually come from property investment opportunities”. This recommendation is based from the information gathered from the last 3 years consisting of income statements, balance sheets, and cash flow
Team B
FIN/486
September 30th, 2014
Daniel Konzen Strategic Financial Plan
The Huffman Trucking Corps strategic planning is the reason why they have been in business since 1936. The financial portion of the strategic plan is crucial for the company’s continued growth and existence. The statements will be from the last 3 years consisting of income statements, balance sheets, and cash flow statements. All three statements will explain major assumptions and identifies areas of risk. The risk that would be identified are: A review of cash flow statements and a recommendation of implementing new short-term working capital strategies on long-term cash flow, an explanation of corporate risk mitigation techniques …show more content…
Short-term financial planning and effective budgeting enhances the realization of the firm’s long-term strategic objectives. Constructing out planned anticipated actions for the firm over a period are essential to check missteps even though such a plan may be subject to change as new information arises or need to address sudden operating uncertainty. Long-term plan is an integral part of the firm strategic goal, and it takes into account the capital structure of the firm, short-term plan, and sources of financing. In addressing the new short-term working capital strategies with respect to long-term cash flow, we are to consider the dynamics between the incomes generating capacity of the new initiatives. The resources purchasing activities of Huffman Corporation with respect to the new business strategic initiatives should be consider as well. The CEO memo indicated a just in time (JIT) delivery business strategy, a satellite warehouse, and $10 million space rental cost as new spending areas. These new spending areas will require additional financing. Considering the Pro-forma statement, asset will increase by $31,485.00 compared to 2011 total assets. An increase in an asset such as a permanent asset means purchases has been made that will require payment on a loan. Therefore, Huffman Corporation …show more content…
Product or service risk refers to the risk a company encounters simply because of the product or service they offer. The supply and demand and competition are what affect the operational risk for what product or service the company is striving to profit from. A risk management technique is form based upon the company’s capital structure as well as the strategic financial planning. A company relies upon certain amounts of debt to fund their operations, but a company must also remember to properly balance their debt because the higher the debt, the higher the risk.
In conclusion the Huffman Trucking Corp financial strategic planning is the actual reason why they are still in business. The statements provided have shown “that Huffman Trucking can continue to increase long term cash flows is by diversifying investments; Rather than relying mainly on cash contributions, more cash flow could gradually come from property investment opportunities”. This recommendation is based from the information gathered from the last 3 years consisting of income statements, balance sheets, and cash flow