Week 6

Since we already submitted our decision and revised it thoroughly last week, we didn't have much to do that day besides work on our report. The new results for Year 4 Quarter 1 were out on Sunday 4:12pm (although the estimate is Monday 9am.) I was exhausted from teaching my younger brother last night (and working really late on the blog,) so I left at 4:07pm (my driver was already waiting for me for about 15 minutes,) wish I waited five more minutes to get the results.

As I received the reports, I was relieved to know that non of the salespeople resigned; it was a busy quarter, and I expected them to be very tired and some leave in spite of the increase in salary. It must mean that they were all very satisfied with their salaries, and so we decided not to alter the salaries (except for Sereno with an increase of 500 Pesos,) and just increase the commission slightly as always. We wanted to have a total of 15 salespeople everywhere (and 16 in Merica 2, our hometown) and so we hired appropriately. Our price was already a lot more than our competition, so we didn't change it or our spending in advertising either. We were very surprised in frustrated at the fact that we didn't get a new model, even though we invested a lot in the previous quarter, so we invested $180,000 in R&D and $100,000 in training.

We were running very low on money, I was left with the choice of buying back 500 stocks and not paying any dividends or investing in CD's, or to issue $1,000,000 worth of bonds and buyback the stocks, pay dividends and invest a bit in CD. I left the decision at not issuing bonds. However, I was thinking about it all day, and the next day at college, I talked to my fellow partners, and discussed that I wanted to change the decision and issue bonds. They trusted me in whatever decision I make and so I did issue bonds (and also increased dividends to $350,000, and invested $400,000 in CD's.) We also started a 2nd shift on two lines that will start production next quarter to meet our expected sales in the 4th quarter of the year.

When our report for Year 4 Quarter 2 was out, I noticed that my projected balance and actual balance were very different. It bothered me and I wondered why. After revising it thoroughly, I noticed that I forgot to change the beginning cash balance from 1105 to 412. That was a very critical mistake, we were very lucky that we made a lot more money that expected, otherwise, we could've been on the verge of having an emergency loan. Once again, money was tight, we decided to maintain the same price, advertisements, salaries, and even commission. That is because we finally obtained the new model and started producing it and moved to Quality 3 Features 3. Our cost of production increased by a bit over $1, but due to the customers thinking we still sell the old model, we kept it under the same price tag. I decided to issue more bonds to buy back the ever increasing stock prices. This time, we only managed to buyback $300,000 worth of stocks and paid merely $50,000 dividends.

Thew 2nd shift is now ready and is oparational, and we utilized it immediately. We decreased our investment in R & D and training too due to our budget this quarter.