Guillermo Furniture Store Analysis

1319 words - 6 pages

Tootsie Roll Industries, Inc.: Loan Package

Tootsie Roll Industries, Inc.: Loan Package
Tootsie Roll Industries is applying for a loan package that will help them achieve superior things. There are many opportunities that can be accomplished by allocating money to different areas. The different areas include healthier ingredients, expansion, and advertising. These areas will increase the production and success of the Tootsie Roll Industries, Inc. Within this loan package, there are many exciting things that will improve and perfect healthier candies at Tootsie Roll Industries all over the world.
Strategic Applications
With the proceeds from the loan, the plan ...view middle of the document...

1). Therefore, they will use proceeds from the loan to accomplish the training needed to continue the success of the company. The training will involve a newer way to improve the customer service in areas, Tootsie Roll Industries will also train the overseas employees on the new equipment they will receive and finally the company [will use the loan to bring the global worlds together.
The Tootsie Roll Company believes in the high standards of their company, the high quality of their products and the lowest prices possible, the loan will help them to continue to meet these standards. Tootsie Roll Industries realizes the importance of innovation, remaining competitive, and providing options for its customers. The company realizes the need to increase its customer base to stay relevant in today’s society. The loan will help the company to significantly expand the products, customer bases, and brands while meeting current and future obligations financially because they have strength in revenue, liquidity, profit margins, working assets, and capital. The loan package received by the Tootsie Roll Company will provide the company with the information they will need to secure the capital needed to experience exponential growth.
Justification
In justifying why Tootsie Roll Company need financing is for expansion. Expanding the company overseas will require a great deal of financing. The loan will be used for machinery, advertisement, staffing, products, and other services. Tootsie Roll Company believes that this loan will provide better terms for the company; it will provide reasonable costs for products and material, and the right amount of leverage needed to further make this plan a success. Expansion will involve moving cost, set up costs, leasing, and other miscellaneous expenses. The company is willing to show past financials that will prove the company’s ability to repay loans and interest. To further explain or justify why this loan is needed, expanding oversea will require the company to hire experienced personnel. Hiring brings workers compensation, labor laws, and payroll taxes. Proper financing will help the company put those things into place and hire the right employees to handle that area of the expansion. Providing financing for Tootsie Roll Company’s expansion can increase diversity by expanding overseas. Expansion could also introduce new innovative products and services to others overseas. Financing finally will lead in helping costs associated with improving the company with enhancement, and development, purchasing equipment for all operations, and with other expenditure items not listed above. Expanding the business overseas can be rewarding for the company and for the lender.
Financial Analysis and Ratios
Liquidity (dollar values in thousands)
The following financial data illustrates the firm’s short-term ability to pay maturing obligations and to meet unexpected needs for cash:
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