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Financial Statements by Thomas Ittelson

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Chapter 18. Making Decisions About AppleSeed’s Future

AppleSeed Enterprises’s Board of Directors thinks that we can successfully expand our business and that now is a good time to do it. The Board has asked management—that’s us—to prepare several alternative expansion plans for Board review.

The most astute member of the Board reminds us to think strategically. She recommends writing a strategic plan for the business and she counsels a judicious look at capital requirements and sources. First, however, we need to make some decisions.

Where do we want our company to be in five or 10 years? How will we get there from here? What level of risk are we comfortable with? How much money will we need to expand and where will we get it? What is our plan? ...

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