Essay About Private Company And Mean Time

Joint Venture
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BALANCE SHEET FOR THE RICHARD STOCKTON SCHOOL OF BUSINESS DECEMBER 31, 2007
Assets:
Current Assets:
Cash and Cash Equivalents
$55,000
Accounts Receivable, net
$440,125
Short Term Investments
$25,000
Inventory
$20,000
Supplies
$100,000
Prepaid Insurance
$25,000
Total Current Assets
$665,125
Property, Plant, and Equipment:
$2,000,000
Building
Less: Accumulated Depreciation
$1,000,000
$100,000
$900,000
Furniture, Fixtures & Equipment (Net of Depreciation $50,000)
$200,000
Total Property, Plant, and Equipment
$3,100,000
Intangibles:
Goodwill
$50,000
Total Assets
$3,815,125
Liabilities:
Current Liabilities:
Accounts Payable
$200,000
Salaries and Wages Payable
$300,000
Utilities Payable
$15,000
Total Current Liabilities
$515,000
Long Term debt:
Long-term Notes Payable
$500,125
Twenty-year 8% debentures, due January 2, 2027
$500,000
Total Liabilities
$1,515,125
Stockholders Equity:
Paid in on capital stock
Preferred, 7%, cumulative
Authorized, issued, and outstanding
50,000 shares of $10 par value
$500,000
Common-
Authorized, 200,000 shares of
$5 par value; issued and outstanding
$1,000,000
Additional paid-in capital
$785,000
Retained Earnings
$15,000
Total Stockholders’ Equity
$2,300,000
Total Liabilities and Stockholders’ Equity
$3,815,125
Our group believes that the joint venture is not only feasible within the given budget, but also has the potential to set the standard for the interaction of educational institutions and profit driven entities. The long and short-term goals of the School of Business can be met within the $1 million dollar budget. Our research has found that businesses are reluctant to hold on to an asset with fixed costs attached to it and that also does not produce any revenue. The private company, Wawa, has recently been involved in an expansion project that includes the construction of new and larger stores. In the process, Wawa has abandoned the older, smaller stores and have been attempting to sell the property. There are several properties that Wawa has had trouble selling because of the recent real estate crisis. In the mean time, Wawa has been absorbing unavoidable fixed cost from holding on to the abandoned properties. We approached Wawa with the proposition of donating the property and land from an abandoned site located on route 30, so that they can cut their fixed cost and receive a tax benefit. “Corporations and individuals are allowed to deduct contributions made to qualified domestic charitable organizations”. (Smith, 5-14) Educational institutions are considered