Huffman Trucking Accounting Financial Report
As the head of the accounting department it is my role to ensure that my team and I provide you with the information that is needed in order to help propel our company into the future. Being the CEO it is your role to get elements of information from all different departments concerning the different ideas, processes and financial workings in order to help set Huffman Trucking on a prosperous path. My job as the head of accounting is to give you all the financial information gathered by my department to give you a better picture as to our long term financial needs. I will touch upon various points and specific keywords that I will go in more depth about and explain below. I hope this following information suits your needs and that my team and I have done a thorough and detailed job that will allow you to make better-informed decisions.
Let us begin with explaining what EFN is. EFN is external funds needed and is calculated as the difference between the projected total assets and the projected total liabilities and equity. To calculate the EFN, we start with the income statement to get the amount of net income. To make the income statement, were supplied with a revenue growth of 8% for the next three years. Also, there is extra revenue from new initiatives from consulting and warehousing. All this gives us total revenues. To estimate expenses, we are given the breakdown of fixed and variable expenses for each of the expense items. The fixed expenses increase by the inflation rate, whereas the variable expenses adjust with the change in revenue. Depreciation is given as constant and interest expense is also taken as constant as we have not decided on the financing of the EFN. In addition some new expenses are added due to the new initiatives. This includes salaries for four national accounts managers for each initiative, increase in marketing budget, space rental and increase in operating expenses. Wage benefits...
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