Deutsche Brauerei Budget

2001 Budget Approval The proposed 2001 Deutsche Brauerei financial budget creates several questions that inbred be addressed prior to approval. The social clubs upstart financial policy has been to rely on short- status believe loans in effectuate to fund operations and intricacy turn maintaining a consistent, high dividend yield. The use of short-term debt to fuel the company requires a higher interest rate as closely as carries a higher burden of risk than long-term loans that hire in a set rate for an all-embracing extent of time. Accordingly, in order to fund necessary equipment expansion and the proposed construct of w arhouses in the Ukraine Deutsche Brauerei should attempt to secure durable terms of refund from their creditor bankers to replace much of the short term debt currently on the financial argonaments. The proposed budget withal projects an file name extension in Ukrainian sales of 45% in 2001 (Exhibits 1 & 2). The wag must be cautiously rosy ab reveal Ukrainian offshoot, particularly until the investment in state of the art warehouses and other equipment that has been project for 2002. According to Oleg Pinchuk these scheduled upgrades are necessary to sustain harvest-home in the country.

It is our opinion that this growth figure is overly optimistic for the year 2001 given the lack of equipment in place, instability of the Ukrainian government and marketplace, and the fragmented beer distribution industry, which invites external competition. The 2001 proposed budget also has a striking profit in allowance for suspicious accounts that requires close examination by the Board of Directors. The majority of this increas e can be contributed at present to credit s! ales in the Ukraine. Oleg Pinchuk has created a more diffused credit system out of necessity in order to get business from the Ukraine distributors who are not financially viable. The Board must take modified concern with a large increase in project unpaid accounts receivable and deadly debt allowance. Furthermore, the extended...If you want to get a full essay, order it on our website: OrderEssay.net

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