Salinas And Sainas Case Study

Satisfactory Essays
Analyzing the provided financial information for Salinas & Salinas does not justify extending credit to purchase a new building to expand its product line. Two important points of the overall financial assessment that I believe would pose a significant problem for the Salinas are the loan repayment and building depreciate which will can trigger a financial burden given the size of the business and the limited free cash flow. Consumers have an affinity to items that evoke some kind positive feel and good will. Build on the high demand for their current product line.

Albert Gomez assertion that the depreciation on the building over 20 years would $590K annually. Over this period this asset would be devalued in the amount of $11.8 million.
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