Heartland Windows & Doors

Company in existence for 8 years. There are 5 employees. They are:

Name Position Salary Responsibility

Pat Office Manager $60,000 Factory Order Placements & Oversee all office responsibilities

Brian Sales $50,000 Sales & Factory Order Placement

Steve Sales $50,000 Sales & Factory Order Placement

Joe Deliveries $35,000 Truck Deliveries

Robin Accounting $30,000 Payroll, Billings, Expenses, etc

Total Salaries: $225,000

Financials: 2019 2020 2021

Gross Sales: $940,000 $875,000 $894,000

Expenses:

Operations: $122,000 $120,000 $125,000

W&D-Factory: $376,000 $350,000 $357,600

Mistaken Orders: $ 6,000 $ 72,000 $ 55,000

Salaries: $225,000 $225,000 $225,000

Total Expenses: $729,000 $767,000 $762,600

Cash Flow: $211,000 $108,000 $131,400

Overview:

Beginning in late 2018, the company began to have good financial success. Unfortunately, it created great pressure on the back office. It became very difficult for Pat to keep up with the orders coming in from the sales people. So, in 2020 it was decided that the sales people would place the orders with the factory directly. This would eliminate the middle step of going through the office. Additionally, it was decided to create an inventory of approximately $200,000 make up of windows of various sizes. The idea was the potential to have a window in stock and not have to wait 4-6 weeks for the factory to fill the order. This enabled us to make an initial delivery and a final delivery. Although we do our best at maintaining the inventory, there have been issues with misplaced merchandise.

The sales breakdown is:

Phone-In Sales based upon relationships: 50%

Brian: 30%

Steve: 20%

The company is in the middle of applying for a big line of credit with a bank and the bank has asked for a Risk Assessment Report.