BUS 687 HISCO Q2-22 QBR Pre-tax NI Walk:
Plan to Actual---
Q2-22 QBR
5 Key Learnings from Quarter
This quarter brought several learning opportunities that are similar but different from the
previous quarter. Some of these learning opportunities include obtaining long-term growth,
obtaining a better competitive advantage by negotiating with vendors and suppliers, changing the
terms of accounts receivable to a cash inflow sooner, making green energy improvements, preparing
for the next quarter now.
1 .Creating long-term growth can significantly improve the net income commitment can also
outpace inflation. The growth for this quarter has increased by $41,100 by exceeding the market
share projections (University Arizona Global Campus, n.d.). Meeting short-term goals of increased
growth potential increases profits and improves HISCO's position within the market (Zhuokun,
2020) . With increased profits and less debt comes more growth.
2 .This quarter, I leveraged several advantages against our competitors by entering into long-
term contracts and changing with terms with our supplier Hamada and vendor Diversified Products (
University Arizona Global Campus, n.d.). These negotiations improved our cash flow outlook and
manufacturing capabilities. These are important because it improves our bottom line by delaying
payments for forty-five days, allowing the company to sell our product first while also increasing
HISCO's ability to scale up for market demand in the future with increased manufacturing
( Warrillow, 2016).
3 . In conjunction with improving our terms with vendors and suppliers, I have shortened our
terms with our customers. I decreased the term days from forty days to thirty days, requiring quicker
payment by our customers so we can use that cash inflow sooner (Akalp, 2016). I also lowered the
average collection days from forty-four days to thirty-five days. Based on the conversation I had
with Danny in quarter one, I could move the terms between ten and fifteen days without a significant
, loss in volume in sales (University Arizona Global Campus, n.d.). The trade-off appears to favor
HISCO getting paid faster and using that money to reinvest in the company more quickly, further
giving us a competitive advantage over our competitors.
4 .One of the biggest lessons this quarter was understanding the significant impact of applying
green energy and its profound impact on the budget. I negotiated a deal with the CEO, Stanely, to
pay for new solar panels in exchange for equity in the company that does not require to be budgeted.
The benefit of this upgrade is our landlord has agreed to decrease the rent and utilities by 20%
( University Arizona Global Campus, n.d.). The projected overproduction of the solar panels is
estimated at 20%, which is then captured by feeding that excess energy back into the grid. This
overproduction will create a refund for the owner of the building. Also, HISCO can write off the
depreciation value of the solar panels as an additional tax write-off. This deal was a good deal for all
parties involved while reducing our carbon footprint and possibly improving our reputation on the
market.
5 .Lastly, the most important lesson learned this quarter was how to prepare for expected
growth rates for the next quarter. For example, project three will be coming to market next quarter,
and we need to prepare for a possible 50% market share increase next quarter (University Arizona
Global Campus, n.d.). This upgrade led to me deciding to improve the inspection line efficiency
with a software improvement that doubles our capacity to account for the market share increase plus
future sales growth to account for market growth. It would not be beneficial if we spent the money
on project three to increase our market share and not be able to keep up with market demand. I have
projected our manufacturing output to make sure we will be able to keep up with market demand in
the future. This decision also helps keep our commitment to improving our manufacturing
capabilities to compete better with Redex outlined by the strategy.
Pre-tax NI Walk: Plan to Actual
The pre-tax walk is an overview of the projected net income for the current quarter compared
to the previous budgeting quarters that were planned. This quarter was significantly more favorable
than the pre-tax walk last quarter. For example, we are starting to see the investments we had made
previously to begin paying off and bring value and growth to the company this quarter.
1 .Planned net income
Plan to Actual---
Q2-22 QBR
5 Key Learnings from Quarter
This quarter brought several learning opportunities that are similar but different from the
previous quarter. Some of these learning opportunities include obtaining long-term growth,
obtaining a better competitive advantage by negotiating with vendors and suppliers, changing the
terms of accounts receivable to a cash inflow sooner, making green energy improvements, preparing
for the next quarter now.
1 .Creating long-term growth can significantly improve the net income commitment can also
outpace inflation. The growth for this quarter has increased by $41,100 by exceeding the market
share projections (University Arizona Global Campus, n.d.). Meeting short-term goals of increased
growth potential increases profits and improves HISCO's position within the market (Zhuokun,
2020) . With increased profits and less debt comes more growth.
2 .This quarter, I leveraged several advantages against our competitors by entering into long-
term contracts and changing with terms with our supplier Hamada and vendor Diversified Products (
University Arizona Global Campus, n.d.). These negotiations improved our cash flow outlook and
manufacturing capabilities. These are important because it improves our bottom line by delaying
payments for forty-five days, allowing the company to sell our product first while also increasing
HISCO's ability to scale up for market demand in the future with increased manufacturing
( Warrillow, 2016).
3 . In conjunction with improving our terms with vendors and suppliers, I have shortened our
terms with our customers. I decreased the term days from forty days to thirty days, requiring quicker
payment by our customers so we can use that cash inflow sooner (Akalp, 2016). I also lowered the
average collection days from forty-four days to thirty-five days. Based on the conversation I had
with Danny in quarter one, I could move the terms between ten and fifteen days without a significant
, loss in volume in sales (University Arizona Global Campus, n.d.). The trade-off appears to favor
HISCO getting paid faster and using that money to reinvest in the company more quickly, further
giving us a competitive advantage over our competitors.
4 .One of the biggest lessons this quarter was understanding the significant impact of applying
green energy and its profound impact on the budget. I negotiated a deal with the CEO, Stanely, to
pay for new solar panels in exchange for equity in the company that does not require to be budgeted.
The benefit of this upgrade is our landlord has agreed to decrease the rent and utilities by 20%
( University Arizona Global Campus, n.d.). The projected overproduction of the solar panels is
estimated at 20%, which is then captured by feeding that excess energy back into the grid. This
overproduction will create a refund for the owner of the building. Also, HISCO can write off the
depreciation value of the solar panels as an additional tax write-off. This deal was a good deal for all
parties involved while reducing our carbon footprint and possibly improving our reputation on the
market.
5 .Lastly, the most important lesson learned this quarter was how to prepare for expected
growth rates for the next quarter. For example, project three will be coming to market next quarter,
and we need to prepare for a possible 50% market share increase next quarter (University Arizona
Global Campus, n.d.). This upgrade led to me deciding to improve the inspection line efficiency
with a software improvement that doubles our capacity to account for the market share increase plus
future sales growth to account for market growth. It would not be beneficial if we spent the money
on project three to increase our market share and not be able to keep up with market demand. I have
projected our manufacturing output to make sure we will be able to keep up with market demand in
the future. This decision also helps keep our commitment to improving our manufacturing
capabilities to compete better with Redex outlined by the strategy.
Pre-tax NI Walk: Plan to Actual
The pre-tax walk is an overview of the projected net income for the current quarter compared
to the previous budgeting quarters that were planned. This quarter was significantly more favorable
than the pre-tax walk last quarter. For example, we are starting to see the investments we had made
previously to begin paying off and bring value and growth to the company this quarter.
1 .Planned net income
