The McGee Cake Company Minicase

Assignment Part I: The McGee Cake Company Minicase

Read the minicase at end of Chapter 1.

Answer the questions. Each answer should be approximately 75 words, or a total of 225 words for all of the answers.
Assignment Part II: The Sunset Boards, Inc. Minicase
Read the minicase at end of Chapter 2.
Prepare the financial statements.
Answer the questions. Each answer should be approximately 75 words, or a total of 150 words for all of the answers.
Review the West Writing Rubric, which will be used to grade this assignment.
Format your answers using West Writing Style Handbook guidelines.
Assignment Part III: Ratio Analysis at S&S Air, Inc. Minicase
Read the minicase at end of Chapter 3.
Answer Question 1. (Compute the ratios).
Assignment Part IV: Planning for Growth at S&S Air Minicase
Read the minicase at end of Chapter 4. Bottling Company Case Study

After you have completed the readings for chapter 1, you should be ready to complete this assignment. Return to the case study in your textbook and reread it carefully. As you are thinking about your response, please remember that one thing about cases – usually the quick answer is not the correct one. You need to be able to decide what the issues at hand are and what information is really critical to giving the correct advice.

Use the questions at the end of the case for guidance, but remember you may add to your explanations. One thing that student’s tend to do with a case is bring in more information than what is needed – stick to the facts as presented in the case and the chapter readings. Incidence Response Planning Scenario

Please prepare and submit a 2-3 page response including synthesis of chapter readings and applications to corporate organizational structure. You are to use standard APA formatting as required by Excelsior College. Be sure to apply the proper terms and concepts from your readings as you are writing this paper.

If you have any questions as you are working on this mini-case, please post them in the “Questions and Answers” area in Module 1.

To receive full credit, for Mini-cases:

You are to answer the questions that are found at the end of each case in your textbook as clearly and succinctly as possible. You will be graded on the accuracy of your answers and the application of the proper support from text/class material.

Answer #2.

THE McGee Cake Company

In early 2008, Doc and Lyn McGee formed the McGee Cake Company. The company produced a full line of cakes, and its specialties included chess cake”, lemon pound cake, and double-iced, double-chocolate cake. The couple formed the company as an outside interest, and both continued to work at their current jobs. Doc did all the baking, and Lyn handled the marketing and distribution. With good product quality and a sound marketing plan, the company grew rapidly. In early 2013, the company was featured in a widely distributed entrepreneurial magazine. Later that year, the company was featured in Gourmet Desserts, a leading specialty food magazine. After the article appeared in Gourmet Desserts, sales exploded, and the company began receiving orders from all over the world.

Because of the increased sales, Doc left his other job, followed shortly by Lyn. The company hired additional workers to meet demand. Unfortunately, the fast growth experienced by the company led to cash flow and capacity problems. The company is currently producing as many cakes as possible with the assets it owns, but demand for its cakes is still growing. Further, the company has been approached by a national super-market chain with a proposal to put four of its cakes in all of the chain’s stores, and a national restaurant chain has contacted the company about selling McGee cakes in its restaurants. The restaurant would sell the cakes without a brand name.

Doc and Lyn have operated the company as a sole proprietorship. They have approached you to help manage and direct the company’s growth. Specifically, they have asked you to answer the following questions.

QUESTION

What are the advantages and disadvantages of changing the company organization from a sole proprietorship to a corporation?

The McGee Cake Company, which is currently operating as a sole proprietorship, could possibly benefit from forming as a limited liability company (LLC). A LLC is rather anew type of business unit. With a LLC there are reduced legal procedures unlike looking to setting up a corporation. In addition, unlike a corporation, the McGee’s could set up a LLC and yet remain the sole owners of the company. Another advantage as the owners of a LLC, the McGee’s are taxable only for personal income and not for the income of your LLC. With that being said, they would not pay double income tax. A LLC also has a long presence and it will exist forever,regardless of the owner’s death or retirement. Some negatives for the Doc and Lyn to consider are the expense. Although setting up a LLC……….