Eei Firm Essay

GRADUATE STUDIES

EXPERTS IN BUSINESS ADMINISTRATION

FINANCIAL SUPERVISION

CASE 13-1: EEI Corporation1

A CASE EXAMINE

CASE REVIEW

Company Qualifications

EEI Organization was one of the oldest building companies in the Philippines that is engaged in the company of building professional plant features, installing tools, providing replacements parts and supplies, and providing specialized engineering companies to commercial companies in the Philippines and overseas, principally in Middle East.

Features of Procedures

EEI Corporation struggled in mid eighties where that they faced economic difficulties due to troubles with a large project in Central East. The battle was tackled by the business management group headed by the President who also channeled the efforts from the company in products and markets where completely distinctive proficiency.

The company controlled through two divisions which are the Construction-the primary service and revenue segment of the company, which was involved in constructing large-scale industrial facilities, and providing scientific skills, labor and specific engineering services; and the Equipment Division-which originated from the success of the Construction Division, who sold and developed marketplaces for the machinery and industrial items of visible foreign suppliers where they acted while distributor, subcontractor, or licensee of the overseas supplier.

The work

The Group Manager and Controller of EEI Corporation was tasked to prepare a preliminary forecast from the sales and net profit of the firm for the next 36 months for the strategic planning workshop of senior managers.

EEI's managers were positive about the future, thus the forecast for three years needs to be guided by growth in revenues, expenses, and salary over the last four years – using the 1991 to year 1994 financial transactions, because the company experienced the business enterprise crisis ahead of 1991 beginning with 1986. This seemed right to use the sole the most recent encounter as basis for a outlook because the consensus among the EEI's managers is that famine was not in sight for the next three years.

Forecasting Method / Requirements

• Analyze the growth rates

• Forecast the total revenues and net income for three years making use of the average and also the previous year's growth rates. • Explain the method of forecasting utilized.

• Meet the management's requirement to offer at least 20% return on collateral per year by using the forecast net gain – forecasting the possessions and fairness based on earlier growth prices and net gain. Financial Highlights

EEI Company

Financial Illustrates of EEI Corporation and Subsidiaries 1991-1994 (in million pesos)

SALARY STATEMENT1991199219931994

REVENUES

Construction1, 1152, 1511, 6901, 977

Goods sales938963105

Commissions and others32506671

Service Income563368115

Gain on disposal of property,

plant, and equipment0200

1, 2962, 3251, 8872, 268

COSTS AND EXPENSES

Construction932183514041647

Offering and administrative141182162207

Cost of products sold67523566

Expense of services45285377

Interest93317

1, 1942, 1001, 6572, 014

SALARY BEFORE TAX102225230254

Provision pertaining to Income tax36777988

Income just before minority interest66148151166

Minority curiosity on

net loss (income)00(1)(1)

NET INCOME66148150165

BALANCE SHEET

ASSETS7311, 2101, 3502, 289

LIABILITIES4466536651, 422

STOCKHOLDER'S EQUITY285557685867

Monetary Highlights Examination

Division Talk about

1991199219931994

INCOME

Construction86. 03%92. 52%89. 56%87. 17%

Machinery13. 97%7. 48%10. 44%12. 83%

EXPENSES

Construction78. 06%87. 38%84. 73%81. 78%

Machinery21. 94%12. 62%15. 27%18. 22%

Expansion Rates – EEI COMPANY

Revenues-79. 40%-18. 84%20. 19%

Expenses-75. 88%-21. 10%21. 54%

Net Income-24. 24%1. 35%10. 00%

Development – Every Division

INCOME...



San Francisco Espresso Company Dissertation

Related

Category

News