MINI CASE Scandi Home Furnishings, Inc Kaj Rasmussen founded Scandi Home Funishings as a corporation during mid-2007. Sales during the first full year (2008) of on reached $1.3 million. Sales increased by 15 percent in 2009 and another 20 percent in 2010. However, after increasing over 2008, profits fell sharply in 2010, causing Kaj to wonder what was happening to his "pride-and-joy" business venture Aa Kaj worked as closely as possible to a 24/7 pace, beginning with the startup of Scandi and continuing through the first thre full years of operation Scandi Home Furnishings, located in easterm North Carolina, designs, manufactures, and sells Scandinavian-designed furniture and accessories to home furnishings retailers. The modern Scandinavian design has a streamlined and uncluttered look While furniture style is primarily associated with Denmark, both Norwegian and Swedish designers have contributed to the allure of Scan dinavian home furnishings. Some say that the inspiration for the Scandinavian design can be traced to the elegant curves of ar nouveau from which designers were able to produce aesthetically pleasing, structurally strong modern furniture. Danish furnishings and the home furnishings produced by the other Scandinavian countries-Sweden, Norway, and Finland-are made using wood primarily oak, maple, and ash), aluminium, steel, and high-grade plastics. Kaj grew up in Copenhagen, Denmark, and received an undergraduate degree from a technical university in Sweden. As is cal in Europe, Kaj began his business career as an apprentice at a major home furnishings manufacturer in Copenhagen. After learning the trade, he quickly moved into a management position in the firm. However, after a few years, Kaj realized that he really wanted to do was to start and operate his own Scandinavian home furnishings business. At the same time, after travel- ing throughout the world, he was sure that he wanted to be an entrepreneur in the United States. Kaj moved to the United States n early 2007. With $140,000 of his personal assets and $210,000 from venture investors, he began operations in mid- with a 40 percent ownership interest and industry-related management expertise, was allowed to operate the venture in a way that he thought was best for Scandi. Four years later, Kaj is sure he did the right thing 2007 Kaj Following are the three years of income statements and balance sheets for Scandi Home Furnishings. Kaj felt that that would need to continue to expand sales to maintain a competitive advantage. After first concentrating on selling Scandina home furnishings in the Northeast in 2008 and 2009, he decided to enter the West Coast market. An increase in expenses associated with identifying, contacting, and selling to home furnishings retailers in California, Oregon, and Washington. Kaj has mussen hopes that you can help him better understand what has been happening to Scandi Home Furnishings from both operaung and financial standpoints. he vian