Finance Policy Recommendation and Pro Forma Budget: Boeing
Finance Policy Recommendation and Pro Forma Budget: Boeing
Henry Aguirre, Patrick Buckley, Sheri White-Manning, Ted Ortiz, and Becky Wilson
FIN 571
June 5, 2013
Dr. Tom NeSmith
Boeing Working Capital Policy Analysis
Boeing is an aerospace cooperation that has been around since 1916. William E. Boeing, and a former U.S. Navy officer named Conrad Westervelt discovered the cooperation. They started out with a two seated single-engine seaplane called B&W. About a year later, the company was known as the Boeing Airplane Company. During the 1920 through the 1930s, the company sold several types of planes and their patrol bombers to the United States military. Around 1928 Boeing Airplane & Transport Corporation was established. Boeing is recognized as one of the largest global aircraft manufacturers in the world. They come in second as possessing the largest aerospace and defense contract. They are well-known for two of their commercial flights such as the 777 and 787. Boeing cooperation needs to enhance their working capital policy to ensure continues growth and success. Team B will discuss our recommendation by providing three working capital policy strategies, such as the aggressive approach, matching approach, and the conservative approach to the cooperation for their approval. We will create a pro forma budget to define the working capital budget and financial recommendations for the next five years.
Working Capital Policy Strategies
Working capital is simply the difference between a firm’s current assets and current liabilities. Emery, Finnerty, and Stowe states, “working capital provides a measure of the firm’s liquidity, or its ability to meet its short-term obligations as they come due” (2007, p. 47). Working capital policy is an extremely important element in the monetary strategy of large firms. Leadership must be able to lie out a policy that will make use of the firm’s resources most efficiently. The ability for leadership
Henry Aguirre, Patrick Buckley, Sheri White-Manning, Ted Ortiz, and Becky Wilson
FIN 571
June 5, 2013
Dr. Tom NeSmith
Boeing Working Capital Policy Analysis
Boeing is an aerospace cooperation that has been around since 1916. William E. Boeing, and a former U.S. Navy officer named Conrad Westervelt discovered the cooperation. They started out with a two seated single-engine seaplane called B&W. About a year later, the company was known as the Boeing Airplane Company. During the 1920 through the 1930s, the company sold several types of planes and their patrol bombers to the United States military. Around 1928 Boeing Airplane & Transport Corporation was established. Boeing is recognized as one of the largest global aircraft manufacturers in the world. They come in second as possessing the largest aerospace and defense contract. They are well-known for two of their commercial flights such as the 777 and 787. Boeing cooperation needs to enhance their working capital policy to ensure continues growth and success. Team B will discuss our recommendation by providing three working capital policy strategies, such as the aggressive approach, matching approach, and the conservative approach to the cooperation for their approval. We will create a pro forma budget to define the working capital budget and financial recommendations for the next five years.
Working Capital Policy Strategies
Working capital is simply the difference between a firm’s current assets and current liabilities. Emery, Finnerty, and Stowe states, “working capital provides a measure of the firm’s liquidity, or its ability to meet its short-term obligations as they come due” (2007, p. 47). Working capital policy is an extremely important element in the monetary strategy of large firms. Leadership must be able to lie out a policy that will make use of the firm’s resources most efficiently. The ability for leadership
References: Emery, D. R., Finnerty, J. D., & Stowe, J. D. (2007).Corporate financial management. Pearson College Div. http://www.stock-analysis-on.net/NYSE/Company/Boeing-Co/Ratios/Short-term-Operating-Activity#Working-Capital-Turnover Boeing Co., Annual Report , 2012. Retreived from: https://materials.proxyvote.com/Approved/097023/20130301/CMBO_157699/TheBoeingCompany_AR_3-11-13b/page_2/images/image-02.png Mergent Online, M. (2013, May). Mergent Online. Retrieved from http://www.mergentonline.com.ezproxy.apollolibrary.com/companydetail Morningstar Ratios: http://quicktake.morningstar.com/stocknet/bonds.aspx?symbol=ba Boeing Co. Balance Sheet. Retreived from:http://financials.morningstar.com/balance-sheet/bs.html?t=BA&region=USA&culture=en-us Boeing Co. Income Statement. Retreived from: http://financials.morningstar.com/income-statement/is.html?t=BA&region=USA&culture=en-us Boeing Plane Cost http://www.boeing.com/boeing/commercial/prices/ Boeing SEC Filings http://www.sec.gov/Archives/edgar/data/711513/000119312513071067/d450745d10k.htm