Track Software

Only available on StudyMode
  • Download(s) : 1692
  • Published : December 5, 2010
Open Document
Text Preview
TRACK SOFTWARE, INC

ISYNOPSIS

Track Software, Inc. is a company created and built by Mr. Stanley Booker, CPA who spent nights and weekends in developing a sophisticated cost-accounting software program that became the company’s initial product.

As the firm grows, Stanley planned to develop and expand the software product, which will streamline the accounting processes of medium to large sized manufacturers. In the first 2 years of operation, some financial problems occur, so he sold 60% of the stock to a group of investors to obtain needed funds. Although he is quite pleased to have achieved record earnings in 2003, but he is concerned about the firm’s cash flows. He is finding it more and more difficult to pay the bills in a timely manner and generate cash flows to investors – both creditors and owners. Stanley is further frustrated by the firm’s inability to hire a software developer to complete the development of the product. He is reluctant to fill its position for it certainly will affect the firm’s earnings. But if the project will fully developed the firm’s cash flow and earnings will significantly rise. With all this concerns in his minds, Stanley set out to review the various data to develop strategies that would help to ensure the bright future for Track Software, Inc.

IICASE VIEWPOINT

Mr Stanley is focusing on maximizing the company’s profits shown by the increase in net profits over a period from 1997 to 2003. His dilemma about adding a new software developer, which would depress the company’s earnings for the near term, also demonstrates his emphasis on this goal. He need to find strategies to acquire cash for the project and for the company’s success.

IIISTATEMENT OF THE PROBLEM

How to maximize the profit of the company to pay its expenses timely and sustain the operation. •The firm’s inability of hiring a software developer to finish the project

IVSTATEMENT OF THE OBJECTIVES

To make some strategies to...
tracking img