Swot Analysis Of Carpino

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Carpino Company Statement of Cash Flows Financial Accounting January 31, 2007 MEMO TO SHAREHOLDERS TO: Carpino Company Shareholders FROM: Dan Carpino, CEO DATE: 01/31/2007 SUBJECT: Annual Report ____________________________________________________________ __________________ Dear Shareholders, The purpose of this memorandum is to outline some of our key 2007 business performance metrics and generally asses our first year of operations. It pleases me to report these elements of your Company’s activities for the year ended January 31, 2007. Despite generating healthy revenues, our first year of operations ended with a net loss. Although our current year’s negative free cash flow renders us unable to declare…show more content…
Our company reported a net loss of $30,000 due mainly to operating expenses and product costs that exceeded our projections. We are currently working on several initiatives that we believe will significantly reduce our costs relative to our sales. Despite negative net income which reflected a negative free cash flow, our company was able to generate $420,000 through investing activities from supporters such as you. This allowed us to make necessary purchases of essential equipment and fixtures that will be used to create a production line that will allow us the needed production capacity to support our anticipated increased sales. Corporate Actions We have successfully completed the initial set-up of our company and can now focus on achieving profitable operations and sustainable growth. Carpino Company proposes the following plan of action to achieve this goal. • A new manufacturing line will be introduced in the upcoming fiscal year to produce 80% of the company’s packaging and shipping supplies. This is expected to reduce cost of goods sold by 30% and operating expenses by 20%. • Negotiations with several of our supply chain partners are currently underway as part of our efforts to further reduce the cost of goods

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