Giberson Glass Studio
Course Title: Financial Management
Assignment: Mid Semester Exam
Giberson’s Glass Studio
Pages: 6
Table of Contents
Executive Summary 3
Production Schedule 4
Product Mix 5
Product Mix and Schedule 6
Cash Flow 7
Budgeting and Finance 7
Income Statement 7
Balance Sheet 7
Executive Summary
Giberson’s Glass Studio was founded to produce exquisite hand made glass by Edward Giberson in 2002 and
The main problems facing the company are the production schedule and usage of the principle skill set, namely Mr. Giberson. While the business currently operates at a profit, it is not able to provide the $25,000 minimum in wages that is needed.
By changing the production schedule, product mix and using more casual labour, the business can become much more profitable and provide a buffer to allow a day away from the studio.
This would also allow the Furnace and Ovens to be shut off for 1 day a week creating a reduction in gas expense and increasing the life expectancy of these critical facilities.
Another important concern is the condition of the Furnace and Ovens which are only expected to last another 6 months. At the end of this time we need to have budgeted enough to replace them. You will see in the cash flow table, I have shown how you can do this.
Production Schedule
The current production schedule (figure 1) creates 30 hours of blowing time per week with no allowance for the proprietor to have a break. This may not be necessary as you love your time in the studio, but it is prudent to build in a buffer should you wish to take time for yourself.
The main focus of this schedule is to use your skills where they make the most profit and to use cheaper, casual labour where possible. This could include lighting the glory hole, warming the ovens, cold production time and shipping .
|Sunday |Monday |Tuesday |Wednesday |Thursday |Friday |Saturday
Assignment: Mid Semester Exam
Giberson’s Glass Studio
Pages: 6
Table of Contents
Executive Summary 3
Production Schedule 4
Product Mix 5
Product Mix and Schedule 6
Cash Flow 7
Budgeting and Finance 7
Income Statement 7
Balance Sheet 7
Executive Summary
Giberson’s Glass Studio was founded to produce exquisite hand made glass by Edward Giberson in 2002 and
The main problems facing the company are the production schedule and usage of the principle skill set, namely Mr. Giberson. While the business currently operates at a profit, it is not able to provide the $25,000 minimum in wages that is needed.
By changing the production schedule, product mix and using more casual labour, the business can become much more profitable and provide a buffer to allow a day away from the studio.
This would also allow the Furnace and Ovens to be shut off for 1 day a week creating a reduction in gas expense and increasing the life expectancy of these critical facilities.
Another important concern is the condition of the Furnace and Ovens which are only expected to last another 6 months. At the end of this time we need to have budgeted enough to replace them. You will see in the cash flow table, I have shown how you can do this.
Production Schedule
The current production schedule (figure 1) creates 30 hours of blowing time per week with no allowance for the proprietor to have a break. This may not be necessary as you love your time in the studio, but it is prudent to build in a buffer should you wish to take time for yourself.
The main focus of this schedule is to use your skills where they make the most profit and to use cheaper, casual labour where possible. This could include lighting the glory hole, warming the ovens, cold production time and shipping .
|Sunday |Monday |Tuesday |Wednesday |Thursday |Friday |Saturday