Full Throttle Consultation Co.
Dear Ms. Wren McKeemon & Mr. Brad Castanada,
My partners would like thank you for the opportunity and privilege to provide recommendations to your company, BluJay Aviation.
The industry professionals here at Full Throttle Consulting have years of combined expertise in aviation specific business challenges and individual specializations that give you exactly the acumen you require. We can help your business turn value out of operating models, realize growth ambitions, and gain insights that translate into competitive advantages.
We will provide BluJay Aviation with neutral and unbiased assessments and recommendations that are based best business ...view middle of the document...
A liability of $89,000 will be gained on the merchandise acquired from HNK. This liability will only work against the financial position of BluJay Aviation.
After weeks of examination of financial reports, interviews with management and owners, and observation of daily operations; the partners of Full Throttle do not recommend that BluJay Aviation acquire the complete ownership of the gift shop opportunity. The gift shop is a retail business and it is vastly different from the aviation industry. Gift shop operations would require a full outfitting of employees from stock - to management personnel with retail business experience
The ability of BluJay Aviation to grow financially is being hampered by how ineffective the collection of the accounts receivables have been. Our recommendation on motivating clients to pay on time will improve your cash flow.
As of the time of this report, we recommend:
a) Notify any customer when their account enters payment delinquency. Effective communication from an in house collection or third party collection activity will be the answer to your problems regarding late payments.
b) Clients that allow their accounts to become delinquent will now be charged a late payment penalty fee. This will stimulate cash flow and also prevent late payments.
We recommend to either personally review your accounts receivables or hire one employee to identify clients who are close to or past your 30-day payment due date. You or your designated employee will then make or attempt to make contact to recover any monies due. Late paying customers need to be charged a $30 late payment and an increase in any applied interest charges to a 2/5, n/30. This new account adjustment will offer a 2% discount if their account is paid in full during the first 5 days, while retaining the net 30 over the entire account.
Reward your current accounts customers a cost saving measure of a low interest rate and 5/10, n/30. This can improve your cash flow by offering customers a 5% discount.
Give your customers payments options on delinquent accounts by offering a settlement. T he settlement can entice clients to satisfy the account balance in full by paying a lesser amount. Also, make all clients have a credit card attached to their account that is available to charge to recover account costs.
Cessna 172 Depreciation
Currently, your company’s biggest and most important asset is your Cessna 172. We have reviewed your the current and previous years financial statements regarding the service life change of the Cessna.
As of the time of this report, we recommend that the service life of the Cessna be reassessed to 30 years or more. This recommendation has been based on the proven reliability trend of the aircraft and we strongly feel that this adjustment can preserve the assets value and reduce depreciation. The current 15-year aircraft life depreciates at a rate of $9,000 per year with...