Finance
Week #2 (A.) How should Phil organize his new venture? In developing your answer, consider such factors as amount of equity capital needed, business liability, and taxation of the venture.
In my opinion, the cost associated with staring Phil’s venture (Pedal Pushers) seems moderate taking in consideration that the parts are easily obtain and inexpensive. Because Phil’s company is in the development stage, cost is low, he will only hire one employee for sales and base on the product he is offering, the liability seems rather low.
In this case I think he should consider registering the venture as a proprietorship and then in the future he can consider upgrading to LLC depending on the direction that the venture might go. (B.) Phil is concerned about trying to protect the intellectual property embedded in his Pedal Pusher product idea and prototype. How might Phil consider protecting his intellectual property?
I think that Phil should patent his product as it will give him sole rights under the government to seek monetary damage if one should re-create his product or selling it for profit. * Chapter 5: Exercises/Problems: #8, and #9 pp.181 - 182
8.
[Cash Conversion Cycle] Castillo Products Company, described in Problem 7, improved its operations from a net loss in 2009 to a net profit in 2010. While the founders, Cindy and Rob Castillo, are happy about these developments, they are concerned about how long the firm took to complete its cash conversion cycle in 2010. Use the financial statements from Problem 7 to make your calculations. Balance sheet items should reflect the averages of the 2009 and 2010 accounts.

* A. Calculate the inventory-to-sale conversion period for 2010.

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Average Inventory/2
Cost Of Goods sold / 365

400,000 + 500,000 / 2
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