ACCOUNTING

6:  You have been hired by BluJay Aviation as a business consultant. BluJay Aviation, Inc., has been in business for three years. The business has been profitable enough that Wren no longer works for the airport. She is now both an owner and employee of BluJay Aviation. Brad is still at the FBO, but also does some work for BluJay.

An opportunity has arisen at the airport. The gift shop is available for lease. Wren and Brad have been thinking about taking over the operation of the shop in addition to running BluJay Aviation.

Financial statements for the most recent years of operation of the gift shop are supplied.

HNK Co. Income StatementsPreview the documentView in a new window

Come to a conclusion about what they should do and state the reason(s) for your decision. Draw up a rough draft of what you are going to put in the final letter/report to BluJay for Episode 6.

Remember, the best writing is done, edited, and redone.

7: Your business consulting company has received a second request for advice from BluJay Aviation, Inc. BluJay Aviation has allowed their clients to pay 30-60 days after services have been given. This too often causes their cash flow from operating activities to be negative, even though they are earning a profit. The economy has also made them nervous about collecting since a few businesses that use their services, especially the realtors, may not stay in business.

Choose two options they might try to improve their cash flow and also advise them about the valuation of their accounts receivable. Create a rough draft of what you are going to put in the final letter/report to BluJay for Episode 8 due in Module 9.

Remember, the best writing is done, edited, and redone.

8: BluJay Aviation has called on your business consulting company again for some advice. Brad has decided that they should extend the life of the aircraft from an original estimate of 15 years to 20 or 25 years. Three years have already been taken on the aircraft. He believes this will allow them to show a larger profit.

Make a recommendation to BluJay. What are the pros and cons of this alternative? In your recommendation to BluJay, be sure to state the implications of your decision on all of the financial statements, not just the income statement.

Draw up a rough draft of what you are going to put in the final letter/report to BluJay for Episode 8.

Remember, the best writing is done, edited, and redone.

9: Another growth opportunity has arisen for BluJay Aviation and the company has asked for your business consulting company’s advice. A company giving scenic rides over the city in a helicopter has decided to close their business. The helicopter is for sale. Financing of this purchase would be either by borrowing or by obtaining new investors.

Your final letter/report from your consulting company to BluJay is due by the end of this module. It should include your advice on financing the helicopter. What are the advantages and disadvantages of each form of financing expansion? Be sure to determine the effect on the financial statements and various ratios. Recommend whether BluJay should expand, and if so, how the helicopter should be purchased.

Directions

For this assignment, you will turn in your Letter/Report to BluJay Aviation, Inc. Include your company name in the letter/report.

The letter/report should be submitted to BluJay Aviation, Inc., from your consulting business. Be sure to include a bill for your services. Make it appropriate for the amount of work. The letter/report should be approximately 2-4 pages, again editing and rewriting normally improves work. The format should be a typical business letter/report style.

Remember as a business consultant, your company needs to make recommendations for Episodes 6, 7, 8, and 9 and be backed up with data, making any reasonable assumptions your company deems necessary. Refer back to the instructions in Module 5.2 and grading rubric before submitting your letter/report.

Save and submit your assignment using a naming convention that includes your first and last name and the activity number (or description). Do not add punctuation or special characters.

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